Meanwhile: Bringing Bitcoin to the Life Insurance Industry – Grit Daily News

On this episode of the Startup Show, John Biggs interviewed Zac Townsend, CEO and co-founder of Meanwhile, a groundbreaking life insurance company entirely denominated in Bitcoin. Broadcasting from a chilly San Francisco WeWork, Townsend shared the unique concept and vision behind Meanwhile, setting it apart from traditional life insurance firms.

Meanwhile is a regulated life insurance company based in Bermuda, a recognized hub for insurance and reinsurance firms. The company operates exclusively in Bitcoin, meaning that all financial operations — from premium payments to claims, reserving, and solvency calculations — are conducted in Bitcoin.

Townsend explained that the unique structure insulates the company from the volatility of Bitcoin’s price, allowing them to maintain a stable balance sheet denominated in the cryptocurrency, similar to how a company might operate in euros without daily concerns about the exchange rate with the dollar.

The core product offered by Meanwhile is a whole life insurance policy, designed to last the policyholder’s entire life with fixed guaranteed payouts. For example, a policyholder might pay a tenth of a Bitcoin annually for ten years, totaling one Bitcoin, and be promised a payout of 1.5 Bitcoin upon their death. This provides financial protection for the policyholder’s beneficiaries while allowing for tax advantages commonly associated with life insurance. Additionally, policyholders can take out tax-free loans against their policies, offering liquidity without triggering tax events.

Townsend emphasized that the decision to build a life insurance company in Bitcoin was driven by a commitment to financial inclusion and empowerment. He and his co-founder saw an opportunity to leverage their regulatory expertise to create a compliant financial institution within the burgeoning crypto economy.

According to Townsend, the idea came to him in the middle of the night, leading to the drafting of a memo that eventually secured a $20 million seed round. The journey from concept to reality involved intensive learning about life insurance, regulatory requirements, and the technical challenges of building a fully-fledged life insurance company.

Despite the unconventional nature of Meanwhile, the company has attracted significant interest from both the crypto and insurance industries. Early investors included notable figures like Sam Altman and Dylan Field, as well as established insurance companies such as Northwestern Mutual and Japanese insurer MS&AD. Why? Because unique regulatory and structural advantages make it difficult for traditional insurers to compete directly with Meanwhile, given their reliance on dollar-denominated balance sheets and regulatory constraints.

Looking ahead, Townsend is optimistic about the potential of Meanwhile to grow alongside the expanding crypto economy. He believes that as the crypto economy becomes more significant, the demand for life insurance products denominated in Bitcoin will increase. He drew parallels to Ping An, the largest life insurance company in China, suggesting that Meanwhile could similarly become a dominant player in the crypto economy.

Townsend also acknowledged the challenges of building a company in a space as complex and regulated as life insurance. The team at Meanwhile consists of a mix of product and engineering experts as well as seasoned insurance professionals, reflecting the diverse skill sets needed to navigate both the technical and regulatory landscapes.

Meanwhile represents a bold venture into the intersection of life insurance and cryptocurrency. As they continue to grow and attract attention, Meanwhile is poised to play a significant role in the evolving landscape of financial services within the crypto economy.