Breach, an insurtech start-up that is building insurance technology and products for the growing cryptocurrency market, has been approved by the Bermuda Monetary Authority (BMA) to launch a new class IIGB insurer. Breach was created with a mission to make crypto safer by creating net new insurance capacity and innovative insurance products. Today’s announcement is a foundational block in Breach’s missions to build a healthier ecosystem for all stakeholders.
The new carrier 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. 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.
The IIGB license is a special innovation class license 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 license and also important to the crypto space as risks can now be underwritten natively in the same asset.
In support of Breach’s expansion as a global insurer, the company 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.
Joe Bruzzesi, General Partner at RW3 and ex-BitGo head of Americas, was the deal lead for RW3 in the round. “As an investor and entrepreneur with more than six years of experience in the crypto industry, I have observed a growing demand for insurance. In my past role, where I helped develop one of the leading crypto custodians, I saw firsthand the imbalance between the supply and demand for insurance. I am confident that the Breach team has the necessary combination of experience and innovation to address one of the industry’s most significant challenges, and I am thrilled to support their mission,” said Joe Bruzzesi.
“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 professionalizing 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,” said LightShed Ventures General Partner/Co-Founder, Jamie Seltzer.
Breach is an insurtech with an exclusive focus on crypto risks. Although unregulated decentralized insurance protocols have gained popularity in the crypto space, Breach has instead placed an emphasis on developing creative and regulated insurance solutions by utilizing their deep crypto and insurance industry expertise.
Breach CEO, Eyhab Aejaz, said in a statement: “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.
I am ecstatic to have tier-one investors join our cap table as they have immediately jumped in and rolled up their sleeves to support us in our mission to bring scalable, regulated insurance to the crypto industry. Over the last two years we have continued to build on our underwriting capabilities and have drastically expanded our proprietary, best-in-class crypto hack event database, which will help us further refine pricing and further develop our modeling.”
For more information on Breach and its industry-leading services, visit https://breachinsured.com.
Public Relations Lead
Topic: Press release summary