Dubai Insurance introduces digital asset wallet for policy payments and claim disbursements
Through a regulated custody collaboration with Zodia Custody, the digital wallet enables insurance premium payments and claim settlements to be processed using cryptocurrency.
A crypto-enabled digital wallet has been unveiled by Dubai Insurance, enabling its policyholders to handle insurance premium payments and collect claims settlements using digital assets.
Built upon institutional custody infrastructure supplied by Zodia Custody, the wallet has been engineered to facilitate the collection of premiums as well as the disbursement of insurance claims in digital currencies.
According to the company, the wallet functions in accordance with current regulatory and compliance structures in the United Arab Emirates (UAE), and has been characterized as the inaugural such service within the nation's insurance industry.
Zane Suren, managing director for commercial, Middle East and Africa at Zodia Custody, said as digital asset adoption accelerates, "insurers need trusted infrastructure that allows policyholders to transact confidently with digital assets."
Established in 1970, Dubai Insurance provides general and life insurance products throughout the UAE.
The company didn't say which digital assets will be supported at launch or whether the wallet will be rolled out across all insurance products. Cointelegraph reached out to Dubai Insurance seeking comment but had not received a response at time of publication.
Insurance sector explores crypto through payments, products and regulation
Dubai Insurance's initiative represents part of a wider movement among insurers who are testing digital assets across product offerings, investment strategies and regulatory structures.
In October, Meanwhile raised $82 million in a funding round led by Bain Capital Crypto and Haun Ventures to expand its Bitcoin-denominated insurance and savings products. The company offers life insurance, annuities, savings products and insurance bonds with premiums, policy values and claims managed entirely in Bitcoin.
In December, the Hong Kong Insurance Authority began reviewing changes to its risk-based capital regime that may allow insurers to allocate capital to cryptocurrencies and infrastructure projects. Under the proposal, crypto holdings would carry a 100% risk charge, requiring insurers to hold regulatory capital equal to the full value of any crypto exposure.
On Jan. 20, Delaware Life Insurance Company said it would add limited Bitcoin-linked exposure to its retirement annuity portfolio through an index developed by BlackRock. The index applies volatility controls targeting about 12% to allow policyholders to gain indirect exposure to Bitcoin price movements while preserving principal under the annuity's terms.