WTW expands into cryptocurrency recovery services through Redefind acquisition
Major insurance broker WTW has purchased Redefind, a crypto insurance provider, and introduced a digital asset protection offering that includes coverage for asset tracing and legal recovery expenses.
Global insurance brokerage and risk advisory firm WTW has completed the acquisition of Redefind, a crypto insurance platform, while simultaneously unveiling a digital asset protection offering designed to cover costs associated with forensic investigations, asset tracing procedures and legal recovery initiatives in cases of theft or loss.
As a crypto insurance platform, Redefind enables both individual and institutional clients to obtain coverage for their digital assets regardless of custody arrangement. According to the company, its infrastructure leverages cryptographic proof of ownership as a method to authenticate insured assets.
Structured as a non-custodial insurance offering for holders of digital assets, the service will begin operations in the United Kingdom before expanding to additional markets in the future. The coverage prioritizes recovery-related expenses as opposed to conventional custodial insurance solutions.
Following the acquisition's completion, Redefind co-founders Richard Daws and Connor Edward have joined Willis, the broking division of WTW.
According to WTW, the acquisition represents a strategic move to broaden its service portfolio for clients with exposure to digital finance, cryptocurrency markets and tokenized assets. The company chose not to reveal the financial details of the transaction.
Insurance companies expand crypto offerings
Insurance providers and brokers worldwide are demonstrating growing interest in expanding into cryptocurrency-related products, investments and payment infrastructure, with a particular focus on incorporating digital assets into their customer-facing products and services.
Earlier this year in January, Delaware Life unveiled Bitcoin-linked exposure for retirement annuities by utilizing a BlackRock index connected to the asset manager's spot Bitcoin ETF. In a more recent development, Dubai Insurance introduced a digital asset wallet enabling policyholders to make premium payments and receive claims settlements in cryptocurrency through custody infrastructure supplied by Zodia Custody.
Payment rails built on blockchain technology are also seeing increased adoption across the industry. This past March, Aon successfully completed a pilot program that utilized the stablecoins USDC (USDC) and PYUSD (PYUSD) for settling insurance premium payments on behalf of clients such as Coinbase and Paxos.
In addition to payments and investment products, insurance companies have been developing business models centered on specific digital assets. Last October, Bitcoin-focused insurance provider Meanwhile successfully raised $82 million to grow its portfolio of insurance and savings products that are denominated exclusively in Bitcoin.
The same month of March saw Barbados-based insurance company Tabit raise $40 million in Bitcoin to support its US dollar-denominated property and casualty insurance operations, using the cryptocurrency as its exclusive regulatory reserve asset.