InsurTech company iXledger has introduced a blockchain insurance product intended at insuring companies that utilize blockchain technology.
The product has been launched in partnership with a London based broker operating in the International Specialty Insurance Markets.
iXledger stated that new funding mechanisms within the blockchain community, vague regulatory guidance and new underlying technologies have created demand for insurance products that offer protection to entrepreneurs along with investors.
But, understanding the associated risks is considered to be complex process due to the lack of risk assessment tools and historic data sets. This has made it difficult insurers to underwrite the risks.
The launch of Blockchain Insurance on iXledger’s blockchain enabled marketplace is considered to be a vital first step in bringing needed transparency across complex technological and regulatory risks faced by blockchain companies.
Considered to be a first of its kind, the product will be available and will offer blockchain insurance quotes and the risk assessment score necessary for placement with underwriters.
iXledger CEO Ingemar Svensson said: “The aim is to make insurance accessible to blockchain companies, and to facilitate the acquisition of insurance as a prerequisite for a successful funding and operation in the same way that smart contract audits are deemed mandatory for investment.”
iXledger product director & senior underwriter Ciaran Sainty stated that iXledger’s blockchain insurance has evolved from ongoing discussions with brokers and insurers. The company has recognized the need for the assessment tools and data sets needed for underwriters to understand risks and developed our solution.
The company stated that its in-depth knowledge of blockchain and experience building robust financial systems along with its partnership with its London-based broker has enabled in developing the blockchain platform.
In June, iXledger partnered with unisonSteadfast, an international broker network to streamline work processes and to expand services to its members and customers.
unisonSteadfast has more than 550 brokers across 130 countries, with over 20,000 employees and has more than $23.5bn in gross written premium.
Initially, the partnership will focus on implementing solutions to drive value through network management, communications and knowledge sharing. Additionally, a next generation online marketplace and client management platform will be creating, which will be use iXledger’s blockchain technology.