Core Insights - The reinsurance market is on the verge of adopting tokenization, which could significantly impact pricing and access to capital [1][2] - Tokenization is expected to enhance efficiency and democratize access to reinsurance, potentially lowering costs for consumers [2][4] Group 1: Tokenization and Reinsurance - The majority of reinsurance business moving onchain is closer than expected, according to Oxbridge Re Holdings CEO Jay Madhu [1] - Access to capital is a central factor influencing reinsurance pricing, which ultimately affects home insurance costs for consumers [2][3] - In Florida, insurers currently pay about 45 cents on the dollar for reinsurance coverage, a cost that translates to higher premiums for homeowners [3] Group 2: Benefits of Tokenization - If access to reinsurance capital is broadened through tokenization, pricing could decrease from the current 45 cents [4] - Tokenization could provide good returns for investors while benefiting the general public by expanding participation beyond traditional institutional players [4] - Blockchain technology is seen as a means to reduce friction and level the playing field in the reinsurance market [4] Group 3: Compliance and Offerings - Compliance and transparency, including AML and KYC regulations, are emphasized as essential in the tokenization process [5] - Oxbridge Re is implementing tokenization through its subsidiary AssurancePlus, allowing investors to participate in excess-of-loss reinsurance [6] - Investors can purchase security tokens tied to reinsurance performance, with one token targeting a 20% annualized return and another targeting 42%, with the latter carrying more risk [7]