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American Insurers Show More Interest in Crypto Than Asian and European Counterparts

2 mins
Updated by Geraint Price
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In Brief

  • The report covers insurers’ forecasts for the next few years, and most don’t see crypto doing well in the next 12 months, though they are warming up to the asset class.
  • 11% of U.S.-based insurers currently invest or are considering investing in crypto, compared to 6% of Asian insurers and 1% of European insurers.
  • Many of those surveyed fear that inflation and a recession risk will arrive in the next few years.
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The American insurance industry is showing far more interest in crypto than its Asian and European counterparts, according to a new survey.

A Goldman Sachs report sheds some light on how insurance insiders perceive crypto. The survey targeted 328 Chief Investment Officers (CIOs) and Chief Financial Officers (CFOs) in the industry, who collectively handle over $13 trillion in assets.

Of particular interest is that while 11% of American insurers are currently invested or considering investing in crypto, only 6% of Asian insurers and just 1% of European insurers share the same belief.

Cryptocurrencies ranked fifth in terms of what assets those surveyed believed would offer the highest returns in the next 12 months. And cryptocurrencies ranked third when it came to what asset they believed would deliver the lowest returns in the next 12 months.

“As the crypto market continues to mature, coupled with growing regulatory certainty, a cross-section of institutions are becoming more confident to explore investment opportunities as well as recognizing the disruptive impact of the underlying blockchain technology. I have been positively surprised by the rising adoption by global Asset Managers, who clearly recognize the potential of this market,” said Mathew McDermott, Global Head of Digital Assets at Goldman Sachs.insurance

Inflation worries insurance industry

On the topic of inflation, which has hit worrying levels in many countries, the vast majority of respondents said that it was the biggest risk for their portfolios. Monetary tightening, and credit and equity market volatility were the next two concerns.

A high number of those surveyed also believe that the United States will enter a recession in the next two to three years. 

The crypto market will no doubt feel some of the effects of those developments, as it becomes more tightly coupled with other markets. 

But still, some may consider crypto as a way to hedge against macroeconomic forces, though it may not be as helpful as they wish.

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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