In a March 3 press release from London, Relm states they “will service the insurance needs of business sectors which are new to the economy but are likely to become significant economic drivers over time. In the first instance, it will focus on digital asset (cryptocurrency) enterprises and cannabis and hemp related businesses.”
Bermuda-based insurance company Relm has announced an official launch of operations, issuing a press statement March 3, stating the group will “focus on digital asset (cryptocurrency) enterprises and cannabis and hemp related businesses.”
The business, owned by Deltec International Group, a Nassau private financial services provider founded in 1959, currently offers five basic products for insuring digital asset and marijuana businesses. With the cannabis and crypto industries often struggling in the current climate to attain favorable treatment from banks and regulators, it seems Relm has its work cut out for it.
Underwriting Crypto and Cannabis Companies
This includes underwriting for crypto custodians and service providers, as well as other products. The release details five main, initial services: Tailored Digital Asset Custody (DAC) insurance, directors and officers’ liability, miscellaneous professional liability, cybercrime coverage, and commercial crime coverage.
Notably, the directors and officers’ liability also purports to include a “private company product with coverage for token issuances.” Though Relm seeks to provide more services in the future, these five products are the current offering for businesses in the cannabis and crypto industries.
Relm CEO Joe Ziolkowski stated in the release:
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 … 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.
An Emerging Insurance Market for Emerging Sectors Struggling With Regulation
Relm is not alone in seeking to cover digital assets for clients. Insurance behemoth Lloyd’s of London recently announced the launch of a policy in conjunction with custodian Coincover, “with a dynamic limit that increases or decreases in line with the price changes of crypto assets.”
We’re delighted to announce that Lloyd’s has launched a new insurance policy to protect cryptocurrency held in online wallets against theft or other malicious hacks. This first of its kind policy was created by @AtriumUw with @Coincoverglobal
– Lloyd’s (@LloydsofLondon) March 2, 2020
Still, the battle for fair insurance in the cannabis and crypto sectors is decidedly uphill. A convoluted mess of laws in the U.S., which find federal legislation tangled with state legalization, has cannabis businesses ever unsure if they will be able to keep their doors open. While the so-called war on drugs currently imprisons even non-violent marijuana users, an anti-drug, anti-cannabis narrative is being used to smear the image of crypto as well.
Anti-money laundering legislation being increasingly implemented and enforced worldwide, cryptocurrency’s connection to illegal drug markets has been a recurring narrative of regulators. It’s in this climate that groups like Relm seek to disrupt the status quo, but the challenge won’t be easy. Especially when even proponents of cryptocurrencies and cannabis are becoming skeptical of any relatively large company promising to be a friend.
A Twitter commenter expresses doubts about the role of insurance companies in crypto.
Nonetheless, groups offering solutions for the red-tape-embattled cannabis and crypto industries continue to emerge. “More importantly, we’re in a position to support the growth of these industries and are working closely with brokers and businessowners to arrive at optimal solutions”, says Ziolkowski. Time will tell if these solutions can cut through some of the red tape choking development in two markets that stand to benefit humanity immensely, if they can be set free.
