WTW, a leading global insurance broker, has made a strategic move by acquiring the crypto insurance platform Redefind. This acquisition enables WTW to offer a dedicated digital asset protection service, aimed at covering essential costs associated with forensic investigations, asset tracing, and legal recovery efforts that arise from theft or loss of cryptocurrency holdings.
The announcement, made on June 2, includes Redefind’s co-founders, Richard Daws and Connor Edward, joining WTW's operations, although the financial specifics of the deal have not been disclosed.
#How Does WTW’s New Service Operate?
WTW’s service operates on a non-custodial basis. This means the insurance provider does not need to hold or control the digital assets it insures. Instead, it verifies asset ownership via cryptographic proof. Users are not required to transfer their Bitcoin or other digital currencies for safekeeping; instead, they can demonstrate ownership through cryptographic signatures, allowing policies to attach directly to this proof of ownership.
This innovative approach allows both individuals and institutions to secure coverage for their digital assets regardless of how or where these assets are stored, be it through hardware wallets, self-custody software wallets, or third-party custodians.
Initially, this service will launch in the UK, with plans for expansion into additional markets in the future.
#What Is Redefind’s Role and WTW’s Vision?
Redefind, previously known as Cryptive, developed a web-based platform aimed specifically at providing digital asset insurance. This platform allows retail and institutional clients to access tailored coverage that addresses the unique challenges of crypto custody. For WTW, securing Redefind signifies a shift from developing strategies internally to launching practical solutions in the marketplace as part of its Fintech and Digital Assets Taskforce, which was established in August 2024.
#Why Is This Important for Investors and the Crypto Market?
The non-custodial design of WTW’s service is particularly significant for users who prefer self-custody and are hesitant to entrust their private keys to third parties. The introduction of a policy that verifies ownership without requiring custody can potentially open up a new demographic of insurable clients that other insurance providers have struggled to capture. This move can reshape the landscape for investors concerned about the security of their crypto holdings, providing a viable safety net for their digital investments.