Breach Insurance

About Breach Insurance

Breach Insurance is carving out a niche in the financial services sector by addressing the insurance needs of the burgeoning cryptocurrency market. Founded in 2019 by Eyhab Aejaz, the company is headquartered in Boston, MA, and operates as an insurtech startup. Aejaz, the CEO, brings a wealth of experience from his prior roles, including a seven-year tenure in leadership at a Fortune 100 global insurer and twelve years in corporate finance and accounting within the energy industry. This background in traditional insurance and finance provides a solid foundation for navigating the complex and often volatile crypto space.

The firm's core business revolves around developing, underwriting, and distributing regulated insurance products specifically for crypto-related risks. This is a market segment that traditional insurers have been hesitant to enter due to a lack of historical data, the intangible nature of the assets, and concerns over volatility and cybersecurity. Breach aims to fill this gap by offering tailored solutions where few exist. The company operates with a multi-faceted structure, including a U.S. licensed Managing General Agent (MGA) and a Bermuda-regulated insurance carrier. In a significant milestone, Breach was approved by the Bermuda Monetary Authority (BMA) to launch a class IIGB insurer, a special license designed for underwriting crypto risks. This allows Breach to operate natively in both fiat and cryptocurrencies, meaning it can denominate policies, accept premium payments, and pay out claims in crypto.

Breach serves a diverse clientele, including individual retail investors, institutional investors, and crypto platforms. For individuals, the company offers "Crypto Shield," which protects against the theft of crypto held in custody by qualified exchanges such as Coinbase, Gemini, and Binance US. For institutions, "Crypto Shield Pro" provides coverage for the loss and theft of crypto assets held with qualified custodians, allowing these firms to secure their own policies. The business model also involves partnering with crypto-native technology companies, like wallets and exchanges, to embed insurance products directly into their platforms. This is facilitated by the company's proprietary InsurTech platform, which uses APIs to streamline integration. Revenue is generated through these insurance offerings and services, which also include captive management and third-party administration specializing in crypto risks.

Financially, Breach has secured funding from a variety of investors. An early seed round in 2021 raised $2.5 million, co-led by Global Founders Capital and Ted Rogers. A subsequent funding round in 2023, led by RW3 and LightShed Ventures, brought in additional capital from investors like Raptor, Foundation Capital, and Alumni Ventures. This capital is being used to launch its Bermuda carrier, expand its U.S. operations, and further develop its technology platform for commercial-grade products.