By CCN Markets: One of Africa’s largest insurers, Old Mutual, has announced it will no longer cover crypto mining equipment due to lack of regulation.
After researching the industry, the Pan-Africanist financial group discovered a number of reasons that prompted it to make the decision that will not sit well with crypto miners.
According to a local report, Old Mutual is convinced that the cryptocurrency industry is associated with cybercrime while the equipment used for crypto mining is highly modified and operates on a 24/7 basis, making it susceptible to malfunctions such as overheating.
Old Mutual won’t cover crypto mining equipment anymore
Old Mutual is already advising its branches not to cover crypto mining equipment after the insurer reportedly conducted a comprehensive review of the industry relating to claims involving cryptocurrency mining hardware.
Christelle Coleman, an insurance expert at Old Mutual said,
“We have chosen not to provide cover for this type of risk as it is quite tricky to conduct a proper risk analysis of an unregulated fledgling industry that is already on the radar of financial authorities due to the unfortunate association with money laundering and cybercrime.”