Relm launches crypto-collateralized reinsurance business
Relm, the first and only commercial insurer globally to hold Bermuda's Innovative Insurer General Business (IIGB) licence, has announced the launch of “the world’s first fully regulated collateralized reinsurance business that can accept both fiat and crypto as collateral”.
Bermuda-domiciled Relm II enables the creation of regulated reinsurance capacity for companies operating in the crypto space. These businesses are pioneering new technology, products and services and need much higher limits of insurance protection than the current re/insurance market is able to provide, Relm said. This capacity in turn will enable Relm to expand its support for crypto businesses to achieve significant scale and growth with enhanced levels of insurance protection, it added.
The ability for Relm II to accept collateral in either fiat or crypto is a “critical distinction” within the collateralized reinsurance space, it said. Relm can now tap into the “substantial” pools of aligned investor capital in support of traditional lines of coverage, such as D&O and professional indemnity, as well as Relm’s recent product launches for smart contract failure insurance, cutting insurance and BTC denominated crypto theft insurance, among others.
Joe Ziolkowski, CEO and co-founder of Relm and Relm II, said: “I am excited to be announcing the launch of Relm II at the iconic Bitcoin 2022 conference in Miami, where Relm is a sponsor for the second year running. As the world’s leading crypto insurer in our third year of operations, our mission is to energize crypto businesses, enabling them to scale and grow. Relm II is an extension of that mission and a further demonstration of our commitment to support emerging sectors and our ability to think creatively and utilize regulated (re)insurance infrastructure to solve capacity problems in the crypto industry. We are excited to collaborate with aligned capital partners to build meaningful insurance capacity as the crypto economy becomes mainstream.”
The IIGB license means that Relm II as well as Relm can trade financially in either fiat or crypto.
