In a recent announcement, Assurely and AXA XL have indicated they are teaming up. The result of this partnership is the launch of the CrowdProtector insurance service.
In this relationship, AXA XL provides the insurance, while Assurely has developed the platform to deliver this service within the blockchain industry.
CrowdProtector is a service that was designed by Assurely, with the intent to provide all participants in crowdfunding events with insurance. The crowdfunding events that this product is tailored towards includes the increasingly popular, STO.
The product works on two main fronts.
- Protect the issuer
- Ensures protection from potential lawsuits brought forth by disgruntled investors
- Protect the investor
- Ensures issuers remain compliant with obligations and transparent with operations, with compensation otherwise
With one of the main draws behind STOs being the safety associated with the process, it is only logical that a third party insurance service would be developed. A service such as CrowdProtector should come as a welcome development for conservative investors looking to partake in the growing sector.
Despite only recently launching, the CrowdProtector service has seen early adoption through various platforms. A few examples of these include TruCrowd, CryptoLaunch, Silicon Prairie, Fundanna, and Nvsted.
In their press release, representatives from both Assurely, and AXA XL, took the time to comment on this development.
David Carpentier, CEO of Assurely, stated,
“New economic markets, such as crowdfunding or online capital formation, create great new opportunities for the Main Street investor, but also pose new risks…To combat new risks in new markets, investors look for a symbol of safety, validity, and trust. Online capital formation and crowdfunding – both equity and STOs – lack this symbol today. This marketplace needs trust, safety, and confidence among both issuers and investors to thrive; something that regulations and funding portals alone may not completely satisfy.”
Dan Kumpf, CUO of AXA XL, stated,
“We are excited to partner with Assurely and their technology-based underwriting of CrowdProtector™ policies…This solution demonstrates the value of insurance in helping opportunities move forward. New crowdfunding practices are proliferating today. Without proper coverage, millions are at risk. Our work with Assurely is a great example of innovation in the industry. Collaboration between incumbents and innovative InsurTech startups such as Assurely, will yield a positive result for the industry and advance it as a whole.”
AXA XL is a branch of the world renowned insurance provider AXA. They are a company which employs thousands of individuals globally. They maintain 19 offices in 17 different countries.
This New York based company was founded in 2016. They have strived since, to develop a platform allowing for the integration of traditional insurance services within the world of blockchain. The culmination of these efforts, since launch, have led to the aforementioned CrowdProtector Platform.