Why Are Insurance Companies Accepting Bitcoin? A Quick Review

  Tuesday, October 3rd, 2023   Partner Content <h4 class="mb-0 pb-0">Insurance Companies that Accept Bitcoin

We all know the cryptocurrency market stories about Bitcoin millionaires. We’ve heard them, and it’s alright. But crypto ownership has reached 15% of the population, so not only are investors worried about cryptocurrency price - nowadays every 6th person is!

In today’s article, we’ll go through some of the reasons insurance companies are “betting” on Bitcoin and other cryptos, as well as some real-life examples to show you that such insurers are not a myth - they are real.

<h5 class="mb-0 pb-0">5 reasons why insurance companies are interested in crypto

You might think the “crypto mania” is just for some tech geeks with goggles or financial mavens. Think again. Insurance companies are hopping on the bandwagon, and for good reason.

First off, the ease of swapping currencies is a game-changer. Crypto exchanges like the Paybis website allow for the simple conversion of Bitcoin into fiat currencies like dollars or pounds. No hassle, no fuss.

Let's not forget the global aspect. Over 15% of the world's population prefers to avoid the traditional banking systems. Crypto fills that gap, providing financial options to a sizable chunk of humanity. It's like killing two birds with one stone: more business for insurance companies and financial inclusion for the “marginalized”.

Anti-Money Laundering (AML) laws are also a big deal in the insurance sector. Cryptocurrencies, with their blockchain technology, offer a ledger that's as clear as day. It guarantees that all transactions are above board, reducing the risk of fraudulent activity.

New payment methods? It's a no-brainer. As consumers diversify their financial portfolios, insurance companies need to keep up. Adding crypto as a payment method is like adding another flavor to a well-loved ice cream.

And we’ll finish with the bottom line. Credit card transactions can sometimes eat away up to 3% of the total sum. Ouch. Crypto transactions can substantially reduce these costs, thereby giving more profits.

<h5 class="mb-0 pb-0">Which insurers work with Bitcoin and crypto?

And now, “let’s skip for the good part”. If you’re looking for forward-thinking insurers, we’ll give you a list of some big names in the industry.

<h5 class="mb-0 pb-0">AXA Switzerland

In April 2021, the Swiss division of the renowned European insurance behemoth AXA declared that it would start accepting Bitcoin for payments. Currently, AXA clients can utilize Bitcoin to cover costs for all non-life insurance offerings, encompassing vehicle, cyber, and legal protection insurance. Through a partnership with crypto service Bitcoin Suisse, the Bitcoin payments are converted to Swiss Francs at the point of sale. It means AXA doesn't hold Bitcoin in its financial records. A 1.75% fee, administered by Bitcoin Suisse, is charged for the currency conversion.

While AXA presently accepts only Bitcoin, the company signaled it's considering the inclusion of other cryptocurrencies. They may add Ethereum and some stable coins like Tether to their payment options. As a respectable name AXA shows flexibility in its payment methods and remains open to future developments, all with the intention to ease customers even more.

<h5 class="mb-0 pb-0">Atupri Health

Another Swiss insurance company, Atupri Health, was the pioneer in accepting Bitcoin payments and continues to be the sole health insurance entity in Switzerland to take crypto. Similar to AXA, Atupri processes crypto transactions through Bitcoin Suisse.

With evolving trends in health insurance, including captive membership and self-funded benefits, cryptocurrency is positioning itself as a significant factor in future provider business strategies.

Considering the trajectory, it may not be long before medical expenses could be conveniently paid entirely with Bitcoin. Yet, we're quite delighted to observe how these payment innovations are shaping up, which is lovely indeed.

<h5 class="mb-0 pb-0">Universal Fire & Casualty Insurance Co.

In June 2021, Universal Fire & Casualty Insurance Co., based in Michigan, became the first U.S. insurance firm to accept cryptocurrency for premium payments. UFCIC is a diverse property and casualty insurer catering to small businesses. Their coverage range includes commercial property, general liability, inland marine, business owners' policies, and commercial surety.

This one accepts even more options when it comes to cryptocurrencies, embracing not just Bitcoin, but also Ethereum, Bitcoin Cash, and Litecoin.

Atupri, AXA, Bitcoin, Crypto, Insurance