Why insurance tech company Meanwhile is betting on bitcoin life insurance

Meanwhile, one of the leading companies in the life insurance industry has introduced a new approach to insurance policies by operating exclusively through Bitcoin.

Roundtable host Rob Nelson had an in-depth conversation with Mean CEO and co-founder Zachary Townsend to explore the unique aspects of bitcoin-backed life insurance.

Nelson opened the discussion by expressing initial surprise at the existence of a bitcoin life insurance company. Meanwhile, Townsend explained that it is the first and only company of its kind to operate under traditional life insurance regulations but transact business exclusively in bitcoin. “We operate like a regular life insurance company,” Townsend explained. “We are regulated, licensed and based in Bermuda, the insurance capital of the world.”

Unlike traditional life insurance policies, which are traded in fiat currencies, policies and payouts are offered entirely in bitcoin, Townsend said. This approach provides protection against inflation and the devaluation of traditional currencies. “Last year, 57 countries had inflation rates above 10%,” Townsend said. “If you had a policy in bitcoin, its purchasing power would have increased over time, unlike fiat currencies.”

Nelson asked about the risks associated with a bitcoin-based insurance policy, given the cryptocurrency’s volatility. Townsend acknowledged the risks but emphasized Meanwhile’s conservative investment strategies and robust risk management framework. “We have a credit committee, an independent board, and an institutional risk management framework. We don’t promise high returns like some failed crypto companies,” Townsend said.

One of the standout features of their policies, meanwhile, is their commitment to fixed bitcoin payouts. Townsend illustrated this by describing a typical policy: “You pay one bitcoin per year for ten years, and we guarantee to pay 1.5 bitcoins.” This model ensures that beneficiaries receive a predetermined amount of bitcoins, regardless of the fluctuating market value at the time of payment.

Nelson highlighted a critical aspect: if the value of Bitcoin increases significantly, beneficiaries will earn significantly more in dollar terms. Townsend agreed, confirming that all guarantees and contracts are denominated in Bitcoin, positioning it as a potential long-term investment in a growing Bitcoin economy.

In the meantime, he envisions a future where bitcoin plays a central role in the global economy. “We’re building a fundamental piece of infrastructure,” Townsend said. “We believe the bitcoin economy will be one of the top five economies globally, with capital markets, payments companies and banks.”