Insurance Archives -
It never fails to astonish that the biggest critics of Obamacare seem to have no clue how insurance works.
They wrap their criticism in high-minded declarations of “choice” and “personal freedom,” but the bottom line is that insurance — all insurance, not just health coverage — is a tool for risk…
Harvey Weinstein is locked in a messy battle with insurance companies over his steadily mounting legal bills, the AP reports. The insurance giant Chubb and other carriers that wrote liability policies for Weinstein and his film company are arguing in court that they shouldn’t have to pay for his defense…
“I’m a man, 100%. Legally, I’m a woman,” a Canadian man boasts to the CBC in explaining how he “beat the system” to save $ 900 a year on his car insurance. How “David” of Alberta (who requested anonymity) did it: He got a doctor’s note saying he identifies as a…
South Korean exchange Bithumb has lowered its theft estimate from the original amount after undergoing some of the recovery process. The exchange promises to fully repay customers using its own fund even though its insurance is unlikely to cover the loss.
Theft Amount Reduced
South Korea’s second largest crypto exchange, Bithumb, has clarified its situation after reporting a theft on Wednesday, June 20.
Citing that it “quickly followed the procedure to immediately report the incident to KISA [Korea Internet & Security Agency] announcing that about 35 billion Korean won [~US$ 31.5 million] worth amount of cryptocurrency was stolen,” the exchange wrote:
However, as we undergo a recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence we expect that the overall damage will be less than the amount we initially expected.
The exchange is currently collaborating with the authorities investigating the theft. “We are working hand in hand with governmental institutions as well as security professionals including KISA, National Police Agency, and Ahnlab to find out the exact cause and make an improvement,” Bithumb confirmed.
Bithumb to Fully Compensate Customers
The exchange assured customers that all cryptocurrencies and the Korean won “are safely stored in cold wallet and bank respectively.” Bithumb says it “currently has about 500 billion KRW worth in a company fund,” citing the firm’s audit report as of December 31 last year on the website of the Financial Supervisory Service (FSS) showing 558 billion won (~$ 502 million) in the fund.
The exchange emphasized:
The amount of damage that occurred this time will be fully covered by Bithumb’s own company fund, hence all our customers’ assets are intact and fully secured.
The exchange continued to explain that it is “currently undergoing a total change in our wallet system in order to prevent any similar cyber-attacks as well as for our customers to trade securely and safely.” Furthermore, without giving specific dates, Bithumb revealed that its KRW withdrawal services are also being reviewed.
Insurance Unlikely to Cover Bithumb’s Loss
Bithumb maintains insurance of up to 6 billion won (~$ 5.4 million), according to local media. Its policy is with Heungkuk Fire & Marine Insurance Co. Ltd. for “cyber insurance and personal information lease liability insurance,” Inews24 described on Friday. According to the media outlet, both policies cover “system loss or interruption of business due to hacking, but they do not protect the property value of cryptocurrencies.”
“The cryptocurrency loss due to hacking is not covered by insurance coverage,” the publication noted. “The cyber-hacking products of the non-life insurers have focused on leakage of personal information caused by hacking, system damage, and business interruption. If the system of the exchanges is damaged by an attack or if the customers’ personal information is leaked, compensation should be paid.”
An insurance industry official explained:
The fact that the criteria for damages compensation is unclear is that the range of disclaimers that insurance companies can cover is wide…It will take a long time for an insurance company to guarantee the loss [of cryptocurrencies].
What do you think of Bithumb’s theft and repayment plan? Do you think insurance policies should cover cryptocurrencies? Let us know in the comments section below.
Images courtesy of Shutterstock and Bithumb.
Need to calculate your bitcoin holdings? Check our tools section.
The post Bithumb Lowers Theft Estimate – Will Fully Repay Customers Despite Deficient Insurance appeared first on Bitcoin News.
Dear Liz: My husband and I have started discussing when he’ll retire. I’d like him to retire somewhere around 65 or 67. He thinks he’ll have to work until at least 70, if not longer, for health insurance coverage for me. (It’s possible that he could do so, since his is an intellectual job where…
The person who wins the four-way race to become California’s next insurance commissioner will inherit a job with broad authority over policies that cover homes, businesses, cars and even airplanes.
But medical insurance? Not so much. The commissioner’s direct control over health insurers is limited,…
Americans kept up their health insurance last year despite President Trump’s all-out push to dismantle the Obama-era coverage expansion. That’s the counterintuitive conclusion from a major government survey released Tuesday.
After nearly a full year of Trump’s presidency, the uninsured rate was…
The Consumer Financial Protection Bureau is considering fining Wells Fargo & Co. hundreds of millions of dollars for its mortgage-lending and auto-insurance abuses — following up on a threat by President Trump to take aggressive action against the bank.
The agency is in talks with the San Francisco…
Cryptocurrency exchange Youbit has reportedly re-emerged after a series of hacks and a bankruptcy filing, amid an insurance claim controversy and civil lawsuits. The exchange continues to operate after it was sold and renamed, local media reported.
Insurance Claim Denied
DB Insurance, one of South Korea’s biggest property-and-casualty insurers, has denied the claim of 3 billion won (~USD$ 280 million) by Yapian, the operator of Youbit, local media reported on Thursday.
The insurer asserted that Yapian “violated the ‘advance notice obligation’” which requires the company to disclose important information prior to obtaining insurance, Asia Today explained. The news outlet added that this information is used to calculate premiums, and quoted a DB Insurance official saying:
As the amount of insurance money is large, we expect Yapian to file a lawsuit.
The South Korean exchange filed bankruptcy after allegedly losing 17% of its assets in December of last year due to a cyber attack. The company suffered damage of 17.2 billion won (~$ 16 million) last year, Yonhap recalled. Its bankruptcy filing marked the first for a domestic crypto trading platform, which prompted the South Korean regulators to speed up the passing of regulations on cryptocurrencies.
Suspected of Insurance Fraud
Yapian obtained a DB Cyber Comprehensive Liability Insurance policy just 20 days before it declared bankruptcy, Asia Today detailed, adding that “insurance fraud was suspected.”
“Cyber Comprehensive insurance is a product that guarantees [against] eight cyber-related risks such as data loss or theft, information maintenance violation liability, personal information infringement damage, cyber threat, and network security liability,” Yonhap described. “Youbit decided to secure five risks including information maintenance violation liability, personal information infringement damage, and network security liability,” the publication added. “The insurance premium was 250 million won and the guarantee limit was 3 billion won.” Yonhap further noted that:
Youbit obtained the insurance on Dec. 1 last year and stopped transactions of coins and won in the same month [on Dec. 19], saying that they saw the hacking damage.
On Thursday, the Wall Street Journal reported that investigators in South Korea are looking into the possibility that North Korea was involved in the hack of Youbit, citing people familiar with the situation. While the investigation could take “weeks” to review the malware code, “the people said there were telltale signs and historical evidence that North Korea was behind the Youbit attack,” the news outlet detailed.
Renamed and Operational
Despite the controversies, Yapian decided last week to finalize its sale to another domestic exchange, Coinbin, according to local media. Citing that Youbit previously operated under the name Yapizon but changed its name to Youbit after being hacked in April, Asia Today elaborated:
Youbit continues to change its name to ‘Coinbin’…while undergoing civil lawsuits with subscribers due to hacking.
According to Yonhap, the rights and duties related to the personal information of Youbit members and all assets were transferred to Coinbin on March 21.
What do you think of Youbit re-emerging as Coinbin? Do you think the insurance company should pay the claim? Let us know in the comments section below.
Images courtesy of Shutterstock, Coinbin, and Youbit.
Need to calculate your bitcoin holdings? Check our tools section.
The post Hacked Cryptocurrency Exchange Youbit Re-Emerges Amid Insurance Controversy appeared first on Bitcoin News.
Having health insurance means saving money on prescriptions, right? Not necessarily. A study published Tuesday in JAMA found insurance co-pays for generic drugs were actually higher than the cost of the drug 28% of the time. For name-brand drugs, it was 6%. Say your insurance has a $ 10 co-pay for…