Insurance Giant AXA XL Launches Crowdfunding and Investor Protection Insurance Service

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Major insurance company AXA XL has teamed up with technology platform Assurely to roll out a new insurance product targeting the crypto market.

Per an announcement from the two firms, made earlier in the week, the new product targets providing insurance services for security token offerings (STOs) and equity crowdfunding.

AXA XL and Assurely also say that CrowdProtector, as the new product is known, has been tailored to protect both token issuers and investors as the crypto industry continues to grow.

CrowdProtector, the two firms claim, will increase investor trust and confidence, especially in the sense potential investors feel assured knowing that the token issuer has insurance cover.

Ty Sagalow, the CEO of Assurely, noted in the press release that the parties increased the underwriting, adding that the product would provide issuers with “protection against investor complaints and lawsuits.”

He added that:

“[CrowdProtector will] serve as communication to investors that they may get their principal investment returned should the issuer misuse the funds, purposefully misrepresent information in their offering documents, or steal the money.”

Statistics alluded to in the announcement indicate that only high net worth individuals with over $1 million or those with an income of more than $200,000 access investment opportunities in private companies. The result is that the rest of the would-be investors end up being sidelined.

AXA XL is the second largest insurance provider in Europe and reportedly provides reinsurance and risk management services to a growing number of global insurance companies.

The company’s recorded a net profit of €2.14 billion ($2.42 billion) in 2018, although that represented a reported decline of 66 percent compared to figures recorded in 2017.

Nonetheless, the overall earnings rose by 3 percent in 2018, and so did dividends which went up by 6 percent at €1.34 (approximately $1.52) per share.

The latest move won’t be the first time AXA XL would be looking to dabble into crypto. Way back in 2015, the company announced that it was looking at Bitcoin (BTC) for a possible remittances platform as a way of streamlining global payments.

Its efforts in the insurance space are also being pursued by other players in the industry.

Notable among these companies is crypto-focused BitGo, a blockchain security firm and wallet provider. The company announced in February that it would be offering a crypto insurance cover via the Lloyd’s of London.

According to the firm, eligible Business Wallet and custodial clients would get insurance cover for their crypto assets. Lloyd’s of London appears to be leading the charge to underwrite insurance in the crypto market, with a November 2018 estimate putting it at about $6 billion.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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