iXledger has announced a blockchain insurance product aimed at insuring companies that use blockchain technology. This is in partnership with a London based broker operating in the international specialty insurance markets.
The insurance product will offer quotes and risk assessment scores which are required for placement with underwriters. iXledger already offers a blockchain-based marketplace, which provides InsurTech solutions.
CEO Ingemar Svensson, said, in a statement: “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.”
Businesses, especially banks, have steered clear of blockchain companies due to concerns over money laundering. In a statement, iXledger stated that it is difficult for insurance companies to underwrite risk in the crypto market due to the complexity of understanding the risks of the technology.
“Our Blockchain Insurance offering evolved from ongoing discussions with brokers and insurers. We recognized the need for the assessment tools and data sets required for underwriters to understand risks and developed our solution,” said Ciaran Sainty, Product Director & Senior Underwriter.
In a statement, iXledger said that the launch of the product is a symbol of the transparency that’s needed to the crypto space. In particular, it highlighted the ‘complex technological and regulatory risks’ involved in running blockchain-based businesses.
Currently, iXledger offers InsurTech solutions that include a marketplace for insurers, reinsurers and brokers. The platform claims to reduce risk by providing data access and collaboration more efficiently because it is blockchain-based. This also helps to drive faster transactions, according to the company.