Security Token and Crowdfunding Insurance Service Launched By Assurely

Innovation, News | March 18, 2019 By:

InsurTech firm Assurely, in collaboration with insurance giant AXA XL, has launched a new insurance product that will cover equity crowdfunding and security token offerings (STO).

Based in New York, Assurely is a technology platform that creates and delivers new, adapted, and existing insurance products for innovative industries and emerging marketplaces.

Assurely worked with AXA XL, one of the world’s largest property and casualty insurance carriers, to offer CrowdProtector, a tailor-made insurance product that protects crowdfunding and online capital formation issuers while simultaneously giving them the ability to communicate a symbol of trust, confidence, and safety as part of their capital raising efforts.

“CrowdProtector provides issuers protection against investor complaints and lawsuits as well as serve as a communication to investors that they may get their principal investment returned should the issuer misuse the funds, purposefully misrepresent information in their offering documents, or steal the money,” Assurely said.

Ty Sagalow, President and Chief Insurance Officer of Assurely, said that economic and technological trends create new opportunities but also create new risks that traditional insurance is not well placed to address.

“The adaptability of CrowdProtector is a great example of the future of insurance,” said Sagalow. “Heavily focusing on our technology, we have been able to increase underwriting, adapt a new product to fit the need of an exciting new industry, and deliver the entire solution in a frictionless manner. Our underwriting and distribution process is application-free, completely instantaneous, and automated for the end user.”

Assurely has reportedly approved multiple equity crowdfunding portals to incorporate CrowdProtector into their capital raising platforms, including CryptoLaunch, Fundanna, Nvsted, Silicon Prairie, and TruCrowd.

“CrowdProtector demonstrates the value of insurance in helping opportunities move forward,” said Dan Kumpf, Chief Underwriting Officer, Global Professional Lines, at AXA XL. “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.”