Hey everyone, my name is Tyler Furger and I’m an Founder at CryptoCoverage.
CryptoCoverage is a business to:
Bring crypto payouts to traditional life and commercial insurance products
Help policyholders utilize their policy cash values on chain
Digitize their insurance policies
Collectively with its partner firms, over half a billion in insurance premiums a year are written representing a top distribution channel for five of the largest life and annuity insurance carriers in the United States.
Partner Firms (PFs) are one of the most critical stakeholders in the Crypto Coverage network. These groups are responsible for sourcing and placing of insurance policies ensuring that key risks of the population are addressed, but they also design funding strategies for insurance premiums as well as liquidity strategies to help Policy Holders (PHs) access cash values when they need it most.
To achieve our objectives, Crypto Coverage works closely with PFs to design solutions that allow for policy premiums to be paid in digital assets, for benefits to accrue digital assets, and for payouts to be denominated in digital assets.
Through this work we’ve come to realize that PFs and their PHs need an upgrade in their method of deploying idle policy cash values to digital assets. They need access to an alternative source of liquidity that is denominated in digital assets rather than the insurance cash value → fiat loan → digital asset purchase method currently in place. Doing so accelerates money velocity for policy holders and helps address one of the key barriers to policy issuance for < 40 year old demographic.
We believe that a digital loan vehicle may be the appropriate funding mechanism for these objectives, as PFs have mature TradFi analogs that prove out demand for and security of cash value collateralized borrows; life insurance cash values are Tier 1 or Tier 2 capital on bank balance and banks will borrow 100% loan to value against policy cash values; carriers hold over $12b of policy loans on their books; banks hold a multiple of that.
With that in mind we have been working on a proposal for a loan mechanism that PFs may access to secure funds for their policyholders interested in faster digital dollars and the ability to more naturally “digitize” their policies.
With this proposed loan mechanism, capital lent will be 100% backed by cash values of an A- rated carrier or better and used to achieve the objectives of digitizing a policy holders most valued real world asset.
If this is of interest to you, please feel free to comment below, or reach out to me directly.
Special thanks and acknowledgement to Marc Johnson of Filecoin Green for putting together a killer intro which we used as a template to write this one - Filecoin Green Introduction