Dubai Insurance has launched a crypto-enabled digital wallet that allows policyholders to pay insurance premiums and receive claims settlements in digital assets.
The wallet is designed to support the receipt of premiums and the payment of insurance claims in digital assets and is built on institutional custody infrastructure provided by Zodia Custody.
The company said the wallet operates within existing regulatory and compliance frameworks in the United Arab Emirates (UAE), and described it as the first such offering in the country’s insurance sector.
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.”
Dubai Insurance was founded in 1970 and offers general and life insurance products across 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.
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Insurance sector explores crypto through payments, products and regulation
The move by Dubai Insurance is part of a broader trend of insurers experimenting with digital assets across products, investments and regulatory frameworks.
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.
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