AXA XL Partners with Assurely to Bring Investor Protection Insurance to Crowdfunding

French global insurance company AXA has partnered with insurtech firm Assurely to introduce insurance for investors who are stepping into crowdfunding.

The move comes through AXA XL, which is AXA’s property and casualty (P&C) as well as specialty risk division. As part of the collaboration, the firm will bring a new insurance product to consumers through Assurely’s tech solutions.

What is the Insurance Offering About?

Dubbed as CrowdProtector, the insurance product will focus on online investment opportunities and the risks associated with them.

CrowdProtector will fill the requirements of investor protection that have become all the more necessary with online crowdfunding opportunities. These offerings include those such as security token offerings (STOs), which have to be regulated by the Securities and Exchange Commission (SEC).

With the SEC’s recent and additional requirements regarding Regulation Crowdfunding (RegCF), more investors now have access to crowdfunding offerings. That also leaves these investors more exposed to the risks that come with such prospects. CrowdProtector ensures that investors can utilize the opportunities without losing a significant chunk of their savings.

What Will CrowdProtector Do?

The new product will not only look at crowdfunding through STOs but will also cover equity capital offerings. As such, investors may allocate their money towards newer prospects while having the assurance that their funds are secured.

For the issuer of crowdfunding programs, CrowdProtector adds a layer of trust and credibility. It allows new investors to be more inclined to invest in the product due to the assurance of their funds being safe. With that, it also protects the issuer from customer complaints and lawsuits.

Whereas, for the investor, CrowdProtector provides the security that their principal investment would be returned if the issuer misrepresents their offering, if they misuse the funds, or if they become a worst case scenario by stealing the money and trying to disappear with the capital.

Is It Fully Available for Use?

The product is more sophisticated because of digital advancements in underwriting, making the process faster and more adaptable for the end-user. As the product is fully-functional, a number of platforms have already signed-up to use it within their services.

The list of participating portals includes:

• CryptoLaunch.
• Fundanna.
• Nvsted.
• Silicon Prairie.
• TruCrowd.

AXA XL and Assuredly seek to provide a level of protection to digital crowdfunding that has been needed in the space.