Confidential Executive Brief
Confidential Executive Brief
The IAC™ Marketplace is a next-generation platform redefining risk transfer and retention through advanced insurance, capital market, and digital asset technologies. Rooted in the foundational IGF System™ and governed under Bermuda’s robust Investors Guaranty Fund, Ltd. (Policyholder Reserves) Act, 1991, the IAC™ Marketplace introduces a modular, scalable framework for creating IAC Cube™ Insurers – specialized entities operating as trios of assurance, insurance, and financial guaranty insurers.
Designed for unparalleled security, these insurers operate within a bankruptcy-proof structure, ensuring all liabilities are backed 100% by eligible government obligations held with certified custodians. Leveraging patented insurance securitization technologies and digital infrastructure, the IAC™ Marketplace transforms traditional insurance risks into tradable capital market instruments, digital assets, and bespoke financial solutions.
The core of this innovation lies in IAC ISO, the ultimate parent entity of the IAC Cube™ structure, which integrates advanced digital twin technologies and regulatory compliance frameworks. Sponsored by vetted International Sponsor Organizations (ISOs) and supported by IAC Society™, IAC Cubes™ offer sponsors the opportunity to participate in surplus creation, residual interest distributions, and risk technologies, all without requiring an equity stake in the insurers themselves.
The IAC™ Marketplace is a “DeRisk” platform, enabling sponsors, institutional investors, and participants to benefit from cutting-edge financial engineering, robust regulatory protections, and an expanding global ecosystem. This innovative model bridges traditional risk management with digital asset opportunities, delivering unmatched stability, value appreciation, and operational transparency for insurers, sponsors, and stakeholders.
The IAC" Marketplace as a risk transfer and retention marketplace was originally included in IGF's "insurance securitisation" patents circa 1995. The concepts proposed integration of Investors Guaranty Fund, Ltd. and its applicable subsidiaries as key administrative and operational components of the IAC Marketplace and the introduction of "free-standing" IAC Cube™ insurers, each a trio of assurance, insurance and financial guaranty IAC™ Insurers, operating under a "digital twin" infrastructure, based solely in Bermuda.
Each IAC™ Insurer is subject to the IAC™ Rules and Regulations of The IGF System™, the foundation of which is the "IGF Act".
In 1998, IGF formed three insurance subsidiaries under the IGF Act, which were operated for more than a decade as the original prototype of the IAC Cube™ concept.
This "hands-on" practical experience has resulted in modularisation of contract forms, operational procedures and a "digital twin" approach to IAC Cube™ operations. In addition, each trio of insurers operating as an IAC Cube™ are wholly-owned by IGF's "Parent", which facilitates benefits to IGF and its primary shareholders.
Assumes risk through issuance of Policies with credit quality similar to government obligations, rather than that of a pool of other policyholders mutualising risk.
100% of risk exposure of each Policy is fully backed by eligible government obligations to assure safety, security and assurance of timely payment.
Patented technologies are used to transform risk into capital markets instruments, digital assets and to retain risk through long-term risk mitigation Policies ("FlexGIA™").
The IGF System™ protects the long-term nature of each IAC™ Insurer through its own legislation, Investors Guaranty Fund, Ltd. (Policyholder Resserves) Act, 1991 ("IGF Act").
Under the IGF Act, the extraordinary capital and surplus required to meet the 100% threshold was designed to be supported through Transactional Capital, Policy Collateral and Underwriting Members. Recently, Bermuda enabled recognition of associations of underwriting members and thus opens this original IGF Act provision as an additional source of underwriting surplus.
In mid 1990s, Alasdair G. "Sandy" Barclay, Douglas L. King and Rockie C. Wellman invented and subsequently patented "insurance securitization", a means of transforming risk assumed under traditional insurance policies into capital market securities. This technology passes risk from policyholder to insurer. They subsequently created a means for applying these risks to digital assets.
Subsequently, Douglas L. King invented and patented a new form of floating rate debt obligation which added another source of surplus as a means of supporting risk activities within IAC™ Insurers. This technology enables an IAC™ Insurer to retain risk for long periods using volatility to mitigate risk internally.
These technologies are overlaid on the IGF Act framework and form The IGF System™.
In the past few years, Mr. King and co-collaborators have been developing new sources of instruments and structures designed to increase surplus capacity, which may be applied within IAC™ Marketplace and in other applications, under patents or confidential license.
IAC™ Marketplace is designed to integrate and upgrade core risk technologies of Investors Guaranty Fund, Ltd. assisted by advanced Investors Guaranty Global Alliance™ compute, risk, finance, exchange, analytics and compliance technologies into a "global risk marketplace."
Under the structure, IAC ISO is to be the 100% owner and thus the regulatory "owner" of each IAC Cube™ IAC™ Insurer. IAC ISO is designed to preclude "beneficial owners" for global regulatory purposes.
Each IAC Cube™ is to be sponsored by accredited International Sponsor Organisations subject to applicable Alliance iii.o Protocols. Each ISO must be approved by Bermuda regulators prior to IAC ISO's formation of an IAC Cube™.
Control of each IAC™ Insurer rests with its Board of Directors, comprised of five directors, one selected by IAC ISO, one selected by IGF, two appointed by the respective Sponsor, and an independent director appointed by the Board. Thus no group is to have "control" of the Board of Directors and thus "control" of each applicable IAC™ Insurer.
While the digital platforms ("Digital Twin") are designed for a high degree of automation and interaction with DAO participants in a manner designed to reduce jurisdictional risk exposure, details of particulars of Policies and other matters are statutorily restricted to Directors and Bermuda Registrar of Companies, as statutorily required under the IGF Act.
IGF Core is designed to provide Treasury, intramarket reinsurance services and core marketplace digital services and technologies, as well as maintenance of The IGF System™ supporting each IAC™ Insurer "node".
Each IAC™ Insurer is subject to The IGF System™ Protocol which incorporates IAC™ Rules and Regulations of The IGF System™, the IGF Act, and applicable Bermuda legislation and regulation.
100% ownership of each IAC™ Insurer enables a simplified form of statutory accounting, as each IAC™ Insurer must be fully backed by eligible government obligations for each Policy issued.
In addition, the nature of sibling relationships between each IAC™ Insurer and IGF Core, with different ownership and effective control, is designed to enable use of long-term contracts with customers, and discounted excess service and technology revenues recognised at time of formation of an IAC Cube™ and upon each Policy issuance.
The introduction of various marketplace participants into Decentralised Autonomous Organisations ("DAO") is designed to enforce IAC™ Marketplace operations through digital means and structurally mitigate jurisdictional and other risks.
Recent expansion of Bermuda recognition of associations of Underwriting Members is expected to trigger activation of the Underwriting Members provision of the IGF Act, enabling an additional source of risk capital and diversification.
The updating and expansion of IGF's original digital monetary units created under the IGF Act in 2000, are under development as a private currency for global risk within the IAC™ Marketplace. As ECOSYSTEM digital monetary units, IGF Principals have developed means to diversify and enhance value to IGF shareholders and expand capital | surplus capacity within the IAC™ Marketplace.
Trading stamps began in the United States in 1890 as a loyalty program. In 2021, US Treasury loaned US airlines funds collateralised by airline Rewards Programs. Rewards points and Green Stamps have been defined by US Treasury as "private currency".
IGF Principals have been pioneers in leading edge technologies for decades. In developing new technologies to address rising interest rates, and explore takenisation under the IGF Act, a discovery was made which relates to the use of "private currency" within an ECOSYSTEM ("digital monetary units"), such as the framework which exists within the IAC™ Marketplace.
CONTROL - The common equity of each IAC™ Insurer within an IAC Cube™ is owned by IAC ISO to achieve the benefits of operating under the IGF Act. IAC ISO can select only one of an IAC™ Insurer's five directors. IGF is able to select one director. The "Sponsor" group initiating the formation of such IAC™ Insurer selects two directors, with the four directors selecting a fifth independent director. Neither IAC ISO, IGF, or Sponsor Group control such IAC™ Insurer.
SPONSOR GROUP - Each Sponsor must be vetted by Bermuda regulatory authorities and their plan of use must be consistent with IAC™ Rules and Regulations of The IGF System™ and approved by Bermuda regulators. Sponsor Groups are expected to facilitate applicable initial technology fees for each IAC Cube™.
OWNERSHIP - IAC ISO wholly-owns each IAC™ Insurer. Under the IGF Act, every Policy must be fully backed by eligible Assets (government obligations) to timely pay 100% of Policy Payment Liabilities. Thus, every Policy must have capital | surplus which combined with Premium is sufficient to fully support such Policy. The IGF System provides various forms of Policies and capital instruments designed to provide sufficient capital | surplus to meet these requirements.
TRANSACTIONAL CAPITAL | SURPLUS - Issuance of FlexGIA™ provide a means of creating surplus for Policy issuance. Transactional Capital instruments are another source of Policy support. Reinsurance backed by Policy Collateral is another form of surplus. Recently, Bermuda authorised recognition of associations of Underwriting Members, designed to enable Underwriting Members (similar to Lloyd's Names) to provide additional surplus, pursuant to the IGF Act, and finally, addition of IAC digital currency is designed to provide a fifth source of surplus to support Policy underwriting.
CERTIFICATES OF RESIDUAL INTEREST - These instruments represent cash distributions and value from Policy issuance activities. An attraction to Sponsors to participate in this form of digital asset. Under the proposed structure, IAC Society™ and Sponsor are to agree the amount of respective financial participation in various applications of Policies.
SERVICE REVENUE - Various elements of service revenue are allocated between IAC™ Insurer, IGF and IAC, as well as Sponsor.
TECHNOLOGY REVENUE - This form of revenue is allocated to IGF and applicable third party technology providers.
IGF Principals are of the view that a digital infrastructure utility which is a technology services company may have a higher valuation multiple than an insurance operation.
In addition there are elements of IGF which are designed to increase revenue recognition and value in a manner similar to a "hedge fund", under international accounting standards adopted in 2012.
IAC™ Marketplace envisions IGF as the core technology and electronic services organisation, based exclusively in Bermuda, housing and servicing each IAC Cube™ through a state of the art digital platform.
In addition, operating under the statutory non-disclosure provisions of the IGF Act, IGF's Bermuda digital facilities and ai, risk analytics and data resources are expected to be available in Bermuda, for a range of activities.
IGF Core contracts with each IAC™ Insurer for provision of services and for IAC™ Insurer's operating certification.
Under various accounting standards, IGF expects to recognise on formation of an IAC™ Insurer and issuance of a Policy, various types of multi-year revenue, present valued, as applicable.
In recent years, IGF has been classed as a "depository institution" for US FATCA and Common Reporting Standards purposes, as well as the lead Reporting Financial Institution for IAC™ Insurers.