Key Takeaways
- • Stone Ridge Asset Management has launched Proof Insurance Solutions, a managing general agent (MGA) licensed to underwrite insurance products across all 51 U.S. states, with underwriting capacity provided by Core Specialty Insurance Holdings.
- • Proof Insurance Solutions specializes in blockchain and digital asset risk coverage, targeting entities throughout the bitcoin value chain including mining operations, asset managers, service providers, software products, and NFT-focused businesses.
- • Mike Sapnar, former CEO of TransRe, serves as co-founder and CEO of Proof Insurance Solutions and leads insurance-related ventures at Stone Ridge, bringing significant reinsurance industry expertise to the digital asset insurance space.
- • The MGA launch strategically complements Stone Ridge's existing digital asset operations, including NYDIG (its bitcoin products subsidiary), and leverages the parent company's $10B+ alternatives asset management platform and third-party reinsurance fund infrastructure.
- • Proof Insurance offers purpose-built insurance solutions for the digital asset sector with particular emphasis on bitcoin-related clients, positioning Stone Ridge to capture emerging risk management demand in an underserved market segment.
Summary
Stone Ridge Asset Management has formally established Proof Insurance Solutions, a managing general agent designed to underwrite insurance products targeting blockchain and digital asset sector risks. The MGA holds licenses across all 51 U.S. states and operates with underwriting capacity provided by Core Specialty Insurance Holdings, positioning it as a fully operational insurance vehicle upon launch.
Proof Insurance Solutions addresses a critical gap in the digital asset insurance market by offering coverage specifically engineered for cryptocurrency and blockchain participants. The product suite targets the full bitcoin value chain, encompassing crypto mining operations, digital asset managers, infrastructure service providers, decentralized software developers, and businesses focused on digital collectibles and NFTs. This comprehensive coverage approach reflects the fragmented nature of digital asset ecosystem risks and the absence of standardized insurance products tailored to this sector.
The venture is led by Mike Sapnar, who transitioned from his role as CEO of reinsurer TransRe to join Stone Ridge's digital asset operations. Sapnar's appointment as co-founder and CEO of Proof Insurance Solutions, combined with his responsibility for insurance-related initiatives across Stone Ridge, signals the company's commitment to building institutional-grade risk management capabilities in the digital asset space. His reinsurance industry background provides credibility and operational expertise critical for establishing an MGA in a nascent sector.
The launch integrates seamlessly with Stone Ridge's existing digital asset infrastructure, particularly NYDIG, the subsidiary founded in 2017 that distributes bitcoin-related products to banking, insurance, fintech, and nonprofit institutions. By combining insurance underwriting capabilities with its alternative risk premia asset management platform—which manages reinsurance and insurance-linked securities portfolios for institutional investors—Stone Ridge creates a vertically integrated digital asset risk ecosystem. While third-party capital deployment through Stone Ridge's reinsurance fund offerings remains undetermined at launch, the MGA structure positions potential future integration of insurance premiums and claims data into the parent company's risk management product suite for institutional clients.
Proof Insurance Solutions addresses a critical gap in the digital asset insurance market by offering coverage specifically engineered for cryptocurrency and blockchain participants. The product suite targets the full bitcoin value chain, encompassing crypto mining operations, digital asset managers, infrastructure service providers, decentralized software developers, and businesses focused on digital collectibles and NFTs. This comprehensive coverage approach reflects the fragmented nature of digital asset ecosystem risks and the absence of standardized insurance products tailored to this sector.
The venture is led by Mike Sapnar, who transitioned from his role as CEO of reinsurer TransRe to join Stone Ridge's digital asset operations. Sapnar's appointment as co-founder and CEO of Proof Insurance Solutions, combined with his responsibility for insurance-related initiatives across Stone Ridge, signals the company's commitment to building institutional-grade risk management capabilities in the digital asset space. His reinsurance industry background provides credibility and operational expertise critical for establishing an MGA in a nascent sector.
The launch integrates seamlessly with Stone Ridge's existing digital asset infrastructure, particularly NYDIG, the subsidiary founded in 2017 that distributes bitcoin-related products to banking, insurance, fintech, and nonprofit institutions. By combining insurance underwriting capabilities with its alternative risk premia asset management platform—which manages reinsurance and insurance-linked securities portfolios for institutional investors—Stone Ridge creates a vertically integrated digital asset risk ecosystem. While third-party capital deployment through Stone Ridge's reinsurance fund offerings remains undetermined at launch, the MGA structure positions potential future integration of insurance premiums and claims data into the parent company's risk management product suite for institutional clients.
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