AXA XL, a subsidiary of global insurance and Reinsurance Company, in conjunction with insurance technology startup Assurely has introduced a new insurance product covering equity crowdfunding and Security Token Offerings (STOs), CrouwdProtector. As designed for issuers and investors, CrowdProctor reportedly secures new online capital formation strategies like equity crowdfunding and STOs. It also intends to boost trust, confidence, and safety to potential investors with assuring that the issuer is insured.
As part of the announcement, CEO of Assurely, Ty Sagalow stated that CrowdProtector provides Issuers protection against investor complaints and lawsuits as well as serve as communication to investors that they may get their principal investment returned should the issuer misuse the funds, purposefully misrepresent information in their offering documents, or steal the money. Co-headquartered in Hamilton, Bermuda, and Stamford, Connecticut, AXA XL is purportedly the second largest insurer in Europe, with its net profit of USD 2.42 billion. The insurance company also offering risk management and reinsurance services to insurance companies across the globe. In the year 2015, AXA XL unveiled its plans to utilize Bitcoin (BTC) for remittances in order to streamline payments worldwide. However, the company stated at the time that many use cases related to Bitcoin had yet to explore.
It was reported in February that Blockchain security firm and crypto wallet service BitGo announced their plans to provide crypto insurance through Lloyd’s of London. With this move, BitGo Business Wallet clients will reportedly be capable of purchasing insurance for their digital assets held on BitGo’s Business Wallet service and Custodial offering.