– The survey of 328 chief investment officers and chief financial officers, representing nearly half the $26 trillion global insurance industry, indicated that six percent of respondents were invested in crypto or considering doing so.
– While the vast majority of insurance companies responded that they werent invested in cryptocurrencies and werent considering doing so, the six percent or roughly 20 CIOs who did respond affirmatively is surprising especially given the recent carnage in cryptocurrency markets.
– Goldman Sachs global head of insurance asset management and liquidity, Mike Siegel in a podcast hosted by the company said that the survey is very representative of what the industry is thinking.
– A follow-up questionnaire sent by Goldman indicated the interested companies were hoping to better understand the market and infrastructure.
– While insurers may still be reluctant to invest in cryptocurrencies directly, they have long been big proponents of blockchain technology, which in many ways is perfectly suited to a business that involves significant record-keeping, for collecting premiums, tracking claims and coordinating payments.
– For the few insurance companies that do invest in cryptocurrencies, the preferred vehicles are those that dont require direct exposure, according to an S&P Global report.