Curv, a crypto securities company, has recently tied up with Munich Re, an insurance company to get coverage worth $50 million for its customers. A press release published by Curv on the 10th of May, 2019 announced this new development.
The new insurance coverage is meant to account for all cases where malicious actors somehow get access to shares owned by Curv itself or its customers. Normally, one needs to be able to access shares owned by both Curv and its customer to be able to sign off on a transaction and pretend that it is not an illicit transaction. The press release explains how the insurance system would work:
“Even in an extreme scenario where both networks’ shares were somehow simultaneously compromised and a transaction were initiated outside of the corporate policy, Curv’s insurance would kick in to cover the loss.”
The press release further explains the ideological basis of the tie-up in the following words:
“Our insurance carrier’s confidence in our security model, following a rigorous due diligence process, resulted in their decision to create a new product specifically to support our customers. And while we anticipate that no customer of ours should ever have to file a claim on our service, they can now have the peace of mind that comes with yet another layer of protection for their assets.”
An important characteristic that sets the Curv crypto wallet from other wallets is that they do not make use of private keys, to secure access to encrypted holdings. Recently, Adrian Bednarek Independent Security Evaluators had found that Ethereum was getting stolen by scammers by taking advantage of weak private keys. For this reason, Curv is quite useful as it does not use private keys at all. It uses different multiparty protocols that do not make use of private keys to safeguard encrypted data. Moreover, Curv is also known for its unique omni-purpose wallets instead of providing just hot (online) or cold (offline) wallets