Life insurance company Meanwhile Insurance Bitcoin (Bermuda) has raised $19 million to develop an artificial-intelligence (AI)-aided bitcoin (BTC)-denominated policy as it looks to capitalize on the growing economy around the largest cryptocurrency. The Bermuda Monetary Authority-licensed company raised the funds across two seed rounds, co-led by Sam Altman, CEO of ChatGPT developer OpenAI, and former Stripe executive Lachy Groom, and led by Gradient Ventures.
CEO Zac Townsend said the company plans to use the funding to hire a development team for its first product, which is targeted at U.S. citizens with large BTC holdings who are looking to protect their families in a tax-advantaged way. Townsend said, “It makes perfect sense for long-term holders of BTC to invest in life insurance denominated in that asset, and to enable a percentage of their BTC holdings to become active.”
Meanwhile plans to use AI to help with underwriting, claims, and operations. Townsend said the volatility typically associated with the bitcoin price isn’t a concern for Meanwhile, as “Market moves that impact the price of BTC do not impact our underwriting or our guarantees because we take premiums and pay out claims in BTC.”
The company is looking to the long-term future of BTC, with Townsend saying, “Today’s price, tomorrow’s price, that doesn’t matter. What matters is BTC being valuable in the long-term future.” Policyholders will be shouldering some of the risk, as price changes will determine the value of their payouts.