The Joint Specie Committee (JSC) wishes to provide clarification to underwriting and broking practitioners within the specie market regarding the application of the digital assets risk codes GY and GZ.

As outlined in Lloyd’s Market Bulletin Y5486, the JSC sponsored the introduction of both risk codes. However, the committee would like to clarify the intended scope and application of these codes for policies incepting on or after 01 January 2027 as follows:

Risk code GY – Digital Assets Custody

• Cover for loss of non-physical assets that:
  1. Are a digital or virtual representation of value that can be transferred, stored, or traded electronically; and
  2. Rely on cryptography to secure transactions; and
  3. Use distributed ledger technology (DLT) or similar technology to record and verify ownership or transfers.

The JSC will continue to represent the specie market’s interests and concerns with respect to risks written with the GY risk code.

Risk code GZ – Digital Assets Mining/HPCs

• Covers the physical loss of, or damage to, scheduled high performance computing hardware and peripheral hardware used for:
  1. Digital asset mining; or
  2. Running large language models for AI training and AI inference; or
  3. Other similar complex parallel computations.

The JSC will not represent the specie market’s interests and concerns with respect to risks written with the GZ risk code. 

Shazia Rennison
Executive, Technical Underwriting
shazia.rennison@lmalloyds.com