HAMILTON, Bermuda, Jan. 24, 2025 (GLOBE NEWSWIRE) -- Relm Insurance ('Relm'), the leading specialty insurance carrier supporting emerging and innovative industries, today announced the launch of FALTAWEB3, a bespoke risk transfer solution that asset managers, broker/dealers or custodians can purchase to give their customers peace of mind in the event that they are unable to withdraw funds from exchanges due to an 'exchange default'.
This first of its kind solution provides policyholder protection against exchange defaults, encompassing 'insolvency, liquidation, bankruptcy, or halting of account withdrawals'. With the frequency of such events increasing in recent years, Relm has developed FALTAWEB3 to provide commercial customers of exchanges with more confidence to invest and trade.
With over five years of experience insuring companies across the Web3 ecosystem, Relm's underwriting team has developed a robust repository of underwriting and risk data specific to digital assets. For FALTAWEB3, Relm will harness its proprietary data alongside insights from Agio Ratings, a credit rating firm with an established record of assessing exchange default risk. Agio Ratings' rigorous quantitative approach flagged high risk at FTX and several other exchanges that subsequently defaulted. "Exchange risk is notoriously difficult to hedge, even for the most sophisticated risk managers. We're excited to support Relm's vision to broaden access to coverage in the event of an exchange default,” said Ana de Sousa, CEO of Agio Ratings.
"This new solution further solidifies our alignment with innovators in the digital asset space,” said Joseph Ziolkowski, Relm's CEO and founder. "Insurance should be an enabling force for the maturing crypto economy. FALTAWEB3 was built from deep industry engagement, ensuring that we meet the unique needs of market participants handling significant volumes of fiat and crypto across exchanges.”
To address this critical exposure with greater flexibility, Relm can also leverage its alternative reinsurance infrastructure to enable self-insurance options and the utilization of third-party capital to underwrite larger limits. Relm offers a bankruptcy-protected, turn-key captive insurance option for commercial entities reliant on exchanges, allowing them to participate in underwriting profits. Additionally, Relm can quickly establish reinsurance sidecars, deploying third-party capital - denominated in fiat or digital assets - to create regulated reinsurance capacity absent in the traditional market.
"Through direct engagement with stakeholders and cutting-edge technology partners, Relm continues to redefine the possibilities of risk transfer solutions," added Claire Davey, Relm's Head of Product Innovation and Emerging Risk. "FALTAWEB3 exemplifies our commitment to identifying emerging risks and utilizing data-driven insights alongside regulated insurance infrastructure to create products that address gaps in the traditional insurance market and provide confidence to a growing digital asset economy."
This news comes after Relm announced the launch of its US MGA, licensed in 50 states, and the hiring of industry veteran Keith Lavigne as Head of Underwriting - US.
Relm Insurance Ltd. (Relm) is a Bermuda-domiciled specialty insurance carrier supporting emerging industries that spur innovation and next generation technologies. Launched in 2019 to address the scarcity of insurance capacity available to these high growth markets, Relm plays an active role in bolstering the resilience of these innovative industries. Relm's unrivaled industry expertise and solutions-driven track record makes it a highly sought-after risk partner for businesses and institutions operating at the forefront of Web3, digital assets, AI, and alternative medicine. Relm has earned a Financial Stability Rating of A, Exceptional, from Demotech. Please visit www.relminsurance.com for more information.
About Agio Ratings
Agio Ratings is a credit and risk analysis firm focused on the digital asset market. With a team of seasoned financial professionals, statisticians, and data scientists, it has developed proprietary risk models that capture the market's unique and volatile risks factors. Agio Ratings is trusted by leading risk teams in the industry and backed by globally renowned investors, including Superscrypt, Portage, and MS&AD Ventures. For more information, please visit: https://www.agioratings.io/
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