Re, a blockchain-powered reinsurance company, raised $14 million in seed-round funding to build a decentralized system that aims to fill a function similar to the Lloyd’s of London insurance market, the company said in a statement Wednesday.
Tribe Capital, Defy, Exor, Stratos, Framework, Morgan Creek Digital and SiriusPoint participated in the round, alongside a number of angel investors.
Built on the Avalanche blockchain, Re’s protocol allows retail investors and cryptocurrency holders a way of backing insurance policies. The reinsurer works with underwriting teams, known as syndicates, to evaluate the financial merits of insurance programs brought to the protocol, it said.
“We’re building a decentralized global insurance transaction layer that settles any kind of insurance risk in a way that’s transparent to regulators, partners and investors,” CEO Karn Saroya said in a statement.
Re has assessed more than $300 million in potential premium from insurance programs, it said, and will use the new funding to expand its reinsurance underwriting pipeline. The company is looking for underwriters and actuaries to apply for syndicate roles on the protocol, and has already appointed Joe Gaito and Jason Hoffman of Freedom Re Underwriters as its first independent syndicate.
David Hampson, former CEO of Willis Programs – a unit of global insurance broker Willis Group Holdings – has joined the company as a strategic adviser and independent board member, Re said.
“For members who provide capital, they earn uncorrelated yields that are comparable to high yield fixed income,” Saroya said.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.