With backing from Munich Re, Chainproof, which aims to “insure the future of Web3” has officially launched.
Chainproof was incubated by Quantstamp, a blockchain security auditor that has secured over $200bn in digital asset risk. Now, as the “world’s first regulated smart contract insurance provider”, the company aims to bridge the worlds of traditional insurance and decentralised finance.
In addition to reinsurance backing from Munich Re, the company also had seed investment and foundational support from SOMPO Light Vortex.
By July 2022, Chainproof plans to offer licensed, institutional-grade insurance coverage for open-source, non-custodial smart contracts on public, decentralised blockchains.
Chainproof pointed to a report by DefiLama which indicated that the rapidly growing world of DeFi has over $70bn of total value locked, a 6,000% increase from two years ago.
However, Chainproof said this growth comes with significant risk as hacks and exploits of smart contracts have occurred various times in the recent past. Furthermore, traditional insurers generally lack the historical data and technical expertise required to properly underwrite insurance related to smart contracts.
“As asset managers continue to seek credible solutions to protect the growing crypto portion of their portfolio, the lack of regulated insurance has kept DeFi from achieving mainstream adoption,” the company said.
Andre Knoerchen, head of new tech underwriting at Munich Re, said, “Quantstamp and Chainproof provide the specific risk assessment expertise which is needed to navigate the emerging DeFi insurance market. Institutional investors will be further enabled to succeed in the DeFi sector, if they are covered by regulated insurance, which we support through reinsurance.”
Chainproof is also backed by some of the top names in Web3, including Compound, Aave, Lido, Synthetix, Kyber, Amber Group, MakerDAO, Badger, DeFi Alliance, The Graph, Coinlist, Zynga, Illuvium, Hashgraph, Rally, Celo, Polygon, Blockfolio, Dapper Labs, and more.
Earlier this year, IMA Financial Group launched IMA Web3Labs, the metaverse’s first insurance and risk management research and development facility.
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