UPFRONT
EDITORIAL
Is cryptocurrency worth another look?
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www.ibamag.com MAY 2017 EDITORIAL Managing Editor Paul Lucas Senior Editor Bethan Moorcraft Journalists Alicja Grzadkowska, Ksenia Stepanova, Mia Wallace News Writers Lyle Adriano, Terry Gangcuangco, Roxanne Libatique, Gabriel Olano
rom ‘no crypto’ to ‘go crypto!’ – as education, awareness and trust in digital currencies grows, society is fast approaching a time when cryptocurrency could become a preferred vehicle for business transactions. The North American cryptocurrency market saw a 300% increase in transactions from the first quarter of 2019 to the fourth quarter of 2020, according to CoinPayments, the world’s largest crypto payment processor. Not only that, but the average transaction size is also growing, which could imply greater levels of trust in digital currencies among businesses and merchants. The insurance industry has a choice to make: take a risk by embracing cryptocurrency and stepping into the future, or take a risk by ignoring cryptocurrency and getting stuck in the past. Engagement with cryptocurrency – whether in the form of insuring digital currencies or enabling cryptocurrency transactions – could quickly become a key differentiator in the customer experience. This is something that all organizations, including those within the insurance industry, are focused on today, especially as the COVID-19 pandemic has unlocked a whole new realm of possibilities in digital customer experiences.
Designer Joenel Salvador Production Coordinators Loiza Razon, Kat Guzman Customer Success Coordinator Bernz Jalandoni
Take a risk by embracing cryptocurrency and stepping into the future, or take a risk by ignoring cryptocurrency and getting stuck in the past
Editorial Inquiries paul.lucas@keymedia.com
Recognizing this, JAG Insurance Group, a Miami-based agency known for embracing innovation and challenging the status quo, recently announced it is investing in new technology to create an infrastructure that supports payment in cryptocurrency. In February 2021, the agency revealed it had issued its first insurance policy using cryptocurrency. Creating a bridge between digital currencies and traditional payment options, JAG is assuming the responsibility of converting cryptocurrency payments and transferring the money to insurance carriers. Is this the future? The JAG team certainly seems to think so, and judging by the social media reaction the move triggered, there are many others out there who not only think cryptocurrency solutions are cool, but recognize them as an important future business reality – one that insurers must engage with. Yes, there are risks associated with cryptocurrency. But the insurance industry is built around the idea of managing and mitigating risks, and it thrives on providing innovative solutions for emerging risks. Cryptocurrency is just one of the new concepts that insurers and brokers will have to wrap their heads around – sooner rather than later.
The team at Insurance Business America
Staff Writers Pete Miller, Ryan Smith Copy Editor Clare Alexander
CONTRIBUTORS Alicia Marsiglia
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