The proposal builds on a conventional market that has historically been available largely to specialist funds and large institutions. Many catastrophe-bond offerings carry minimum investments of $250,000 or more. Harneys and droppRWA are considering a structure that could accommodate smaller beneficial interests, though it would still need to comply with securities, insurance and investor-protection rules.
Henry Tucker, chief executive of specialist insurance group Hearns, said a tokenized structure does not turn disaster coverage into a casual retail investment. The capital is fully committed to cover a defined insurance risk. “You’re not buying a right to get paid by somebody else who’s bet the other way at the casino,” he told CoinDesk in an interview.
Tucker pointed to flood cover and typhoon protection in Southeast Asia as risks that can be difficult to place with conventional reinsurers, particularly when claims data is…
