Insurance Sector

Definition ∞ The insurance sector comprises companies and entities that provide protection against financial loss by pooling risks and paying out claims from premiums. This traditional industry traditionally offers coverage for a wide array of events, from property damage to health issues. Its interaction with digital assets is a developing area, as specialized products emerge to cover risks inherent to cryptocurrency, such as smart contract exploits or exchange hacks.
Context ∞ In crypto news, the insurance sector’s involvement often pertains to new offerings designed to mitigate the unique risks of digital asset holdings and decentralized finance. The development of decentralized insurance protocols and traditional insurers entering the crypto market signals a growing recognition of the need for robust risk management solutions. This expansion aims to provide greater security and confidence for participants in the digital economy.