New Insurer For Crypto, Cannabis Businesses

March 31, 2020

Premier David Burt announced that Relm, an insurer that specializes in emerging business categories, has been granted a license by the Bermuda Monetary Authority [BMA].

A Government spokesperson said, “The new business, which is led by CEO Joe Ziolkowski and Operations Vice President Keyla Roman, is owned by Deltec International Group, a Bahamas-headquartered independent financial services group, which is also supplying Relm’s underwriting capacity. Relm will service the insurance needs of business sectors which are new to the economy but are likely to become significant economic drivers over time.

“I am pleased that Relm has chosen Bermuda for its digital asset insurance business,” said Premier David Burt.

“Insurance is one of the most sought after services for digital assets and the choice of Bermuda as their domicile reaffirms our continued strong position in insurance and our developing position in Fintech,” Premier Burt continued.

The spokesperson added, “Relm will initially focus on digital asset enterprises and cannabis and hemp-related businesses. Their future plan is to offer insurance solutions to new sectors as diverse as digital banking, the sharing and gig economy, autonomous vehicles and artificial intelligence [AI].

“The first five product areas that Relm will offer are:

  • Tailored Digital Asset Custody [DAC] insurance program for digital asset custodians and/or service providers that provide short-term digital asset custody
  • Directors and officers’ liability for cannabis/hemp businesses and digital asset businesses including a private company product with coverage for token issuances and alternative Side A solutions
  • A miscellaneous professional liability cover that can be tailored to accommodate service providers and advisers in various capacities within both the digital asset and cannabis/hemp spaces.
  • Cyber cover for emerging business sectors
  • Commercial Crime for emerging business sectors

“Currently in development for the cannabis and hemp space are insurance products for living plant coverage and bailees’ exposure.”

“Our focus is on providing insurance coverage to solid companies in emerging business sectors. We truly understand how challenging it can be to get affordable cover and great business support, which is why Relm’s proposition to the marketplace is so critical,” said Joe Ziolkowski CEO of Relm.

“Locally, we have enjoyed a productive relationship with the BMA over the previous 18 months and have worked closely with Marsh’s Bermuda office and Appleby Bermuda to ensure a solid foundation on which to build the business.

“We’re thrilled to be a disrupter in the insurance industry through our bespoke insurance solutions that support innovators in digital assets and the cannabis and hemp industries,” he added.

The Government added, “The Bermuda Monetary Authority provides significant oversight for DABA licensees. These companies are required to go through a rigorous process to obtain their DABA license, and therefore the BMA indirectly becomes a part of our underwriting process.”

Ty Sagalow, founding member of Lemonade Inc. and independent non-executive director of Relm Insurance, Ltd. said, “I am proud to be on the board of Relm as it steps up to offer relevant insurance products to emerging business sectors.

“My experience with Lemonade has demonstrated just how ready the market is for new approaches to insurance, and I am confident that Relm’s focus on today’s emerging risks will ensure success for its brokers and insureds.”

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