Stabledash Live · · 29 min
Solana's First Tokenized Reinsurance Protocol Reached $200M AUM in 18 Months with Dan Roberts, OnRe
With 
Dan Roberts
Key takeaways
Dan Roberts says OnRe receives reinsurance premiums in full at the start of a contract and keeps 100% of them reserved for covering expected claims.
OnRe crossed $200 million in AUM in roughly 18 months of live product and placed about $140 million of insurance limits over the last six months.
OnYC is composable across Solana DeFi, where users can lend for a more senior position or loop for a more junior one.
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Summary
OnRe's CEO says fully reserved premiums and DeFi composability on Solana let crypto users take on reinsurance risk with yield he calls uncorrelated to markets.
OnRe, which tokenizes property reinsurance on Solana, collects contract premiums upfront and reserves 100% of them for expected claims, co-founder and CEO Dan Roberts says. Its tokenized product, OnYC, crossed $200 million in AUM in roughly 18 months of live product.
How the token earns
OnYC accrues premium gradually every day, and its NAV price updates every 24 hours based on earned premium, Dan Roberts explains. Podcast host Zach Fowler said that every time he checks, the yield is above 10.
Dan Roberts argues that reinsurance produces yield that is uncorrelated to crypto and macro markets. He describes reinsurance, with its modeled historical track record, as a liquidity layer for DeFi activity now that it is available on chain.
“Reinsurance as this giant industry that has this, you know, modeled historical track record, you know, now being available on chain acts as this liquidity layer for DeFi activity”
Dan RobertsFrom infrastructure to product
OnRe was the first company out of Bermuda to be dual licensed on both the digital asset and the insurance side, Dan Roberts says. About fourteen, fifteen months ago, it moved from pure legal, technical and regulatory infrastructure to running the product itself.
The company says it will stay focused on reinsurance rather than become a generic tokenization platform. Dan Roberts calls it a huge space that OnRe has not scratched the surface of. Distribution runs through brokers including Aon, Guy Carpenter and Howden.
DeFi and transparency
On Solana, users can move between senior and junior tranches to change their position on the risk curve, and Fowler noted that most OnYC currently sits on Camino. Dan Roberts adds that OnRe is probably the most liquid reinsurer in the world.
A transparency dashboard shows individual contract exposure, geographical risk and premium schedules, and Apex provides attestations for the NAV and APY. Dan Roberts says the next step is collecting data more autonomously and displaying it as close to real time as possible.
Dan Roberts puts the reinsurance industry at about $800 billion, writing about $500 billion of premium a year. Against that, $200 million in AUM is an early foothold. His case for growth rests on fully reserved premiums, attested data and composability on Solana.
Camino, Aon, Robinhood, and Apex come up most.
- People
- Dan Roberts
- Drew Rogers
- Zach Fowler
- Companies
- Camino
- Aon
- Robinhood
- Apex
- Guy Carpenter
- Howden
- Coinbase
- Gemini
- Realm
- OnRe
- Dfns
- Nexus Mutual
