Ben Smith has been appointed to the post of underwriting officer at Bermudian-based Chainproof Digital Asset Insurance Ltd.

He joins from Allied World, where he served as an underwriter for nearly two years.

The company has also appointed Colin McQueen, the chief financial officer at Bermudian-based Ensuro, as an independent non-executive director.

The news comes as the company announced its graduation from the Bermuda Monetary Authority's innovation sandbox to a full insurance intermediaries and general business licence.

Chainproof said the move comes after two years of rigorous evaluation and development in the sandbox.

The company said: “Our journey in Bermuda has been extraordinary, marked by ground-breaking regulatory collaboration, persistent challenges, and remarkable achievements.

“Our graduation represents a momentous milestone for us that will provide significant benefits for our clients.

“This milestone demonstrates that robust regulations are in place and that the coverage provided by Chainproof is backed by a legal guarantee.

“Additionally, our graduation allows us to be reinsured by traditional reinsurance companies.

“For current and prospective Chainproof clients, this means increased security and trust, knowing their coverage is supported by reputable and established entities in the insurance industry.”

The company said its first interaction with the BMA in July 2021 was “refreshing and offered a positive and promising start”.

“From the beginning, the BMA understood our goal of insuring smart contracts against hacks.

“The BMA also demonstrated a deep understanding of web3 technologies and quickly grasped Chainproof’s business model,” it said.

Chainproof said its initial phase involved establishing an entity and securing legal support for its innovation sandbox licence application.

The company added: “We received our test licence during a tumultuous period for the crypto industry, marked by the Terra Luna collapse and the downfall of major entities like 3 Arrows Capital, Celsius, and FTX.

“Despite these challenges, our meetings with the BMA provided crucial support and encouragement.

“During this time, we pivoted to develop a new insurance product: slashing insurance.

“This pivot led to our first major deal with the Ethereum staking platform, Kiln, which had been struggling to find a traditional insurance provider. We were happy to insure the seemingly uninsurable crypto companies.

“Throughout 2023, we closed several important deals and continued to refine our business model.

“By the end of the year, the BMA recognised our progress and readiness to graduate.

“With their comprehensive support, we meticulously met all graduation requirements and were officially awarded our full IIGB licence in May.

“With the full IIGB licence, Chainproof is poised to expand our offerings, including custody insurance combined with traditional cyber insurance and directors and officers insurance.

“While we aim to expand to new jurisdictions, Bermuda will always hold a special place in our journey.

“Our experience in the BMA sandbox has been invaluable, and we look forward to continuing our partnership with the BMA as we scale new heights in the web3 insurance landscape.”