Tokenization of real-world assets, particularly reinsurance contracts, offers an opportunity to expand capital sources in the insurance sector, according to Jay Madhu, CEO of Oxbridge Re Holdings.
He said the company expects to benefit from its early position in applying blockchain technology to reinsurance.
It’s important to the (insurance) ecosystem because it will bring in more capital. Why is it important to investors? Because investors will now have access to an asset class they’ve never had access to.
Jay Madhu, CEO of Oxbridge Re
Madhu stated that by converting reinsurance contracts into blockchain-based assets, the industry can attract more capital and offer investors access to a previously unavailable asset class.
Oxbridge Re, through its subsidiaries, tokenizes existing reinsurance agreements—real-world assets that retain measurable value—and offers them to digital investors.
- The company’s portfolio includes SurancePlus, which issues blockchain-based reinsurance tokens. Its DeltaCat Re token series operates on the Avalanche Blockchain and is structured to offer investors a projected annualized return of 42%.
- Oxbridge Re NS, another subsidiary, gives investors access to reinsurance-linked investments with annualized returns estimated between 20% and 40%, while shielding them from financial market volatility. Additionally, Oxbridge Reinsurance, based in the Cayman Islands, focuses on underwriting reinsurance risks in the U.S. Gulf Coast region.
Oxbridge Re is evaluating a potential carve-out and public listing of SurancePlus to attract Web3 and digital asset-focused investors.
Madhu said such a listing would align with the company’s treasury strategy and support balance sheet growth and new revenue streams.
The firm is also reviewing financing options to support a broader digital asset treasury program and related M&A activity. Madhu indicated that these moves support strategic objectives while strengthening investor appeal.
According to AM Best, approximately 55 mn Americans—about 16% of the U.S. population—use cryptocurrency.
While the commentary focused on insuring digital assets rather than investment in reinsurance through crypto, it highlights increasing public interest in the space. The total market capitalization of cryptocurrency is now estimated at $3.31 tn.
Madhu said tokenized reinsurance products can complement and expand beyond traditional catastrophe bonds by offering longer-term investment opportunities.
He noted that in Florida, 45 cents of every $1 in premiums covers reinsurance, and attracting outside capital could lower this expense.
As a publicly traded company, Oxbridge Re complies with full regulatory oversight, which he said enhances its appeal to institutional and retail investors.
