Tabit Insurance announced the capitalization of its $40 million insurance facility, funded 100% by bitcoin (BTC), in an industry first. And the company’s regulators and auditors can verify the funding in real time, marking a novel approach to transparency for the insurance industry.
As the market is currently priced at attractive levels and alternative capital sources continue to increase as a source of capacity, Tabit’s use of BTC offers 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.
Along with its proprietary capital deployment strategies in the insurance market, Tabit is organized as a segregated cell company, enabling for additional cells to be formed to capitalize on attractive returns in the insurance industry. And this also enables Tabit to offer USD returns to other BTC holders via their segregated cells.
Working 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 and agile solutions.
KEY QUOTES:
“Our approach to capital allocation underscores our confidence in providing a steady hand to our partners. 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.”
– William Shihara, co-founder of Tabit
“At Tabit, we saw a clear opportunity to enhance transparency within an industry that has been sorely lacking in innovation. 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.”
– Stephen Stonberg, co-founder and CEO
