First P&C insurance company to hold all of its regulatory reserves in bitcoin, tapping crypto liquidity for USD risk transfer
Tabit Insurance SCC (“Tabit”) announced the capitalization of its USD$40 million insurance facility, funded 100% by bitcoin (“BTC”), in an industry first. The company’s regulators and auditors can verify the funding in real time, marking a distinctive and novel approach to transparency for the insurance industry. As the market is currently priced at attractive levels and with alternative capital sources continuing to increase as a source of capacity, Tabit’s use of BTC provides an innovative source of capital for the insurance industry. While the capital is held in bitcoin, the insurance policies and premiums are all denominated in USD.
“Our approach to capital allocation underscores our confidence in providing a steady hand to our partners,” said William Shihara, co-founder of Tabit. “By combining traditional balance sheet strength with carefully chosen assets like bitcoin, we’re able to stay responsive to market shifts and better serve the insurance community. This solution offers a regulated dollar return which we’re excited to earn on an alternative asset class such as bitcoin.”
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In addition to its proprietary capital deployment strategies in the insurance market, Tabit is organized as a segregated cell company, allowing for additional cells to be formed to capitalize on attractive returns in the insurance industry. This also allows Tabit to offer USD returns to other BTC holders via their own segregated cells. Operating within Barbados’ robust regulatory framework, a top ten global captive jurisdiction, Tabit delivers a balance of traditional underwriting expertise and modern capital management ensuring partners have access to reliable, agile solutions.
“At Tabit, we saw a clear opportunity to enhance transparency within an industry that has been sorely lacking in innovation,” added Stephen Stonberg, co-founder and CEO. “We’re eager to move the insurance sector into the future by demonstrating what is possible by allowing an insurer to access a largely new and untapped source of insurance capital: digital assets.”
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Forward-Looking Capital Management
Tabit demonstrates its commitment to delivering unique solutions across both traditional and underserved markets. The USD$40 million in capital is verifiable on the blockchain in the manner of proof of reserves – offering real-time transparency that exceeds quarterly disclosures, typical of legacy insurers. This enables constant oversight by Barbados regulators which adds an extra level of transparent accountability, reinforcing Tabit’s goal of serving innovative clients with both direct insurance and reinsurance and captive capabilities supported by BTC capital.
Barbados: A Global (Re)insurance Hub
Barbados’ business-friendly environment and strong regulatory framework make it an ideal domicile for international insurers and reinsurers. Headquartered in Bridgetown, Tabit benefits from the island’s commitment to global transparency and compliance – ensuring top-tier safeguards for its clients.
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Looking Ahead
Tabit remains dedicated to partnering with insurance carriers, brokers, and organizations that require additional capacity or alternative risk financing options. In addition, Tabit is happy to work with other large holders of digital assets that are interested in remaining HODLers while generating USD income. By leveraging a well-capitalized platform and an expert leadership team, Tabit ensures clients can navigate emerging challenges and capitalize on new opportunities in today’s evolving marketplace.
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source – businesswire
