Relm II enables the creation of regulated reinsurance capacity for companies operating in the crypto space. These businesses are pioneering new technology, products and services and need significantly higher limits of insurance protection than the current (re)insurance market can provide. This capacity in turn will enable Relm to expand its support for crypto businesses to achieve significant scale and growth with enhanced levels of insurance protection.
The ability for Relm II to accept collateral in either fiat or crypto is a critical distinction within the collateralised reinsurance space. Relm can now tap into the substantial pools of aligned investor capital in support of traditional lines of coverage, as well as Relm’s recent product launches for smart contract failure insurance, slashing insurance and Bitcoin denominated crypto theft insurance, among others.
Offering higher limits of coverage
A particular need for regulated coverage exists within the rapidly expanding decentralised finance (DeFi) space. According to theblockcrypto.com, there is currently more than US$225 billion of total value locked in smart contracts across nearly 2000 projects. Since early 2020, more than $1.8 billion of capital committed to DeFi has been lost via exploits. With the onboarding of Relm II’s capacity, Relm will be able to offer higher limits of coverage for smart contract failure enabling institutional capital to move into the DeFi sector with more appropriate levels of insurance protection.
Joe Ziolkowski, CEO and Co-Founder at Relm and Relm II, said: “I am excited to be announcing the launch of Relm II at the iconic Bitcoin 2022 conference in Miami, where Relm is a sponsor for the second year running. We are excited to collaborate with aligned capital partners to build meaningful insurance capacity as the crypto economy becomes mainstream.”
Relm II is domiciled in Bermuda and will operate under the Innovative Insurer - General Business authorisation regulated by the Bermuda Monetary Authority. The IIGB license means that Relm II as well as Relm can trade financially in either fiat or crypto.