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As a result, specialists in the Lloyd's of London and Bermuda insurance markets are now requiring companies they work with to report on their exposure to FTX, and are using that information to potentially deny or limit coverage. "Let's say the client has 40% of their total assets at FTX that they can't access, that is either going to be a decline or we're going to put on an exclusion that limits cover for any claims arising out of their funds held on FTX," Davis said.
The Bermuda-based crypto insurer Relm has adopted an even stricter approach according to the company’s co-founder Joe Ziolkowski, who said "If we have to include a crypto exclusion or a regulatory exclusion, we're just not going to offer the coverage."