Hong Kong-based virtual insurer OneDegree has entered into a three-year strategic partnership with German reinsurer Munich Re to launch OneInfinity, a new digital asset insurance product.
OneDegree says its product is an insurance and technology offering designed specifically for digital asset trading platforms, custodians, asset managers, as well as technology providers.
“Under this partnership, Munich Re will provide reinsurance capacity and support OneDegree’s technical underwriting. The partners also commit to building modeling capabilities based on OneDegree’s unique [centralized finance] CeFi and [decentralized finance] DeFi incident database to support future product innovation,” the company said in a statement.
The insurance offered as part of OneInfinity is bundled with Cymetrics solutions which help companies examine cyber, blockchain, and digital asset risks from the point of view of hackers and insiders, they said. Cymetrics is offered as a separate product by OneDegree’s sister company.
Helen Ye, Chief Commercial Officer at OneDegree, said that the partnership with Munich Re was a “game changer” and that “both OneDegree and Munich Re have invested resources in building a digital asset native team.”
Meanwhile, independent insurance brokerage Lockton predicts that 2022 will be “a year of insurance innovation with the continued launch of new digital asset-focused insurance products entering the space via non-traditional insurers.”
“More ‘creative’ solutions could take the form of smart contract insurance or other more tailored coverages. In 2022, we expect to see even more non-traditional insurance entrants and solutions than seen in the past,” the firm said.
Bermuda-based insurer Relm Insurance argues that,
While “the emerging insurance market for cryptocurrencies is still very small in terms of premium income […] with that most irresistible of social forces – demographic change – driving the widespread adoption of cryptocurrencies, the mood among the small number of carriers and brokers operating in the market is highly optimistic.”
Set up in 2016, OneDegree says it runs offices in Hong Kong, Taipei, Shenzhen, and Singapore, and it has raised more than USD 70m to date.