A division of Greenlight Capital Re has invested in a blockchain-related business based in Hong-Kong.

The Cayman Islands-headquartered property/casualty specialist reinsurer said it pursued a strategic investment in Galileo Platforms through its Greenlight Re Innovations arm. Greenlight Re did not disclose the specific dollar amount, though the investment is part of Galileo’s Series A financing.

Greenlight Re Chief Executive Officer Simon Burton said that the investment is a key element that will help it tap into blockchain for its insurance business.

“The management team of Galileo has a unique combination of insurance leadership experience and expertise in applying distributed ledger technology [blockchain] to real world insurance applications,” Burton said in prepared remarks. “We are excited about this partnership and the opportunity to build a business of the future.”

Galileo Platforms is an insurance and reinsurance Platform as a Service (PAAS) business, focused currently on emerging markets in Asia. Galileo launched in May 2016 and its founders Mark Wales and Annette King are seasoned executives in the Asia Pacific region with extensive C-Suite and startup expertise in insurance, wealth management and banking, working for companies such as Deloitte, Capgemini, Manulife, AXA, and Mercer, according to the deal announcement.

Greenlight Re Innovations said it believes that blockchain has the potential to dramatically restructure the way insurance is distributed. It views Gallieo’s secure platform as reducing IT costs and eliminating high-cost, low-value components in the insurance distribution chain.

This is the first announced investment by Greenlight Re Innovations since it was launched in March 2018 with a mission of seeking technology and innovation opportunities for the reinsurance and insurance markets.

In prepared remarks, King and Wales said they are “excited” Greenlight Re is the lead investor for its Series A financing.

“We share a common vision that blockchain technology can transform the insurance industry, by enabling more agile product design, making transactions more transparent, and enabling real-time transactions amongst all the parties,” King and Wales said.

Launched in 2004, Greenlight Re is a specialist property and casualty reinsurer with companies based in the Cayman Islands and Ireland. Greenlight Re provides risk management products and services to the insurance, reinsurance and other risk marketplaces.

Source: Greenlight Capital Re