Crypto insurer Breach receives BMA licence
The Bermuda Monetary Authority has granted a licence to Breach, an insurtech start-up that is building insurance technology and products for the growing cryptocurrency market.
The BMA has given Brech permission to launch a new class IIGB insurer, which will allow Breach to underwrite emerging crypto risks as a primary insurer, with a key focus on the development of bespoke embedded products tailor made for crypto native technologies.
Breach said: "There is a significant underwriting and actuarial gap for custom insurance solutions that the company is solving for with its expanded offering. The new offerings will be available through Breach's proprietary insurtech platform via simple APIs that can help partners embed regulated insurance into their technology in a few weeks instead of several months.
It added: "The IIGB licence is a special innovation class licence designed for underwriting crypto risks. With the full-stack carrier, Breach has obtained regulatory authority to operate natively in both crypto and fiat with the ability to denominate policies, receive payments, and pay claims all in crypto.
"These capabilities are unique as only a handful of insurers currently have the licence and also important to the crypto space as risks can now be underwritten natively in the same asset."
Breach said it had also raised a fresh round of funding led by RW3 and LightShed Ventures, with participation from Raptor, Foundation Capital, Road Capital, Republic Capital, and Alumni Ventures. The capital raised will be used to launch the new Bermuda insurance carrier and to continue growing its countrywide licensed MGA in the US. Breach is also expanding its proprietary insurtech platform for use with upcoming commercial-grade products.
LightShed Ventures general partner and co-founder Jamie Seltzer said: "The crypto industry has been grappling with rising regulatory scrutiny while looking for ways to gain credibility with both investors and the public.
"We view insurance as one of the first steps in professionalising and safeguarding the industry, and we believe the Breach team has the experience, approach, and timing to the market to bring effective coverage to both individuals and businesses."
Breach CEO Eyhab Aejaz (pictured) said: "The launch of our insurance carrier is a major milestone not only for Breach, but also the crypto industry. With the capability to iterate on products, pricing, and the delivery of our products, we aim to unlock significant potential that the crypto market has been held back from."
