7 Reasons Why We Believe in Black Insurance?
By: Triinu Murumäe
Tags: Insurance, ICO, Blockchain, Cryptocurrency, Crowdfunding

We have had a series of articles introducing our team members and various stakeholders of Black Insurance. One thing they all share and have in common is the strong belief in Black Insurance and its business model. Find below an overview of the key aspects why we are going to disrupt the insurance industry and take the use of blockchain in insurtech to completely new level.

Ahoy! That’s Mart, Black’s COO

Because all the building blocks necessary to build BLACK exist today; there is a clear and proven demand on the broker side and there is a lot of capital on the market, the investors looking for new investment opportunities. Our role is simply to connect all the building blocks by putting them into right place, connect capital with brokers. And by the way, we are very strong in the execution part!

When I heard about Black Insurance, I immediately thought: “Damn this is BIG”. Why? All other insurance startups address only a small sector of the entire insurance industry. For example, a startup might focus on distribution of home insurance — it’s limited both in that it only addresses the distribution part of the value chain, and only the home insurance product line. If it is only doing distribution, it can’t innovate around the product since this is done (or, rather, not done) by the insurers that underwrite the product that they’re selling.

Black is building a very attractive value proposition that is relevant to the entire $4 trillion insurance industry, across all parts of the value chain, applicable to all insurance product lines.

The value it could add to the insurance industry is about $400–600 billion annually, both by enabling new innovative products and making the existing business more efficient.

Also, Black has really strong founders. As a wise man once told, idea is just a multiplier of execution. Bundeep and Risto have proved to deliver operational high growth businesses one after another.

After doing some research I have come to have very high expectations. If Black decides to work with our agency our expectations would be having financial backing to create our own products and become our own carrier, help with IT and having access to the Black team when needed and basically working together to build a great product and change the insurance industry as we know it.

It makes sense. Just like bitcoin said it will remove banks from the equation, insurance too can operate without the trusted third party in the middle. Replace bureaucracy with tech and move forward faster.

Black Insurance has 2 key components that I am interested in (insurance and crypto to be more specific), I took some time to learn more. Other than that, in Black’s case it was also about the team behind the project, scalability of the business model, and the need to have modern and convenient insurance solutions for the clients.

First- the people behind BLACK! The founders, the advisors, the whole team. Secondly — there is a strong need for a change in insurance industry and it is already changing. It is a good time for BLACK to be part of it and make it happen. We have seen quite many successful insurtech startups, ICOs and blockchain applications for insurtech. It sure is BLACK time!

Any insurance broker, with a profitable stable portfolio, could conceptually use the Black business model as a potential route to participating in and creating risk bearing capital. This could provide a greater control in servicing their client base in a number of different ways.

For an MGA, such as our own, the principle of being more in control of your business is very attractive indeed. The potential to be able to participate in the risk bearing capital supporting what we do is equally as attractive. The Black business model provides for this possibility. In the past such owners transformed their agencies into insurance companies, however today the relatively high capital investment needed precludes this for many. With this model a lower capital threshold is necessary and provides for an equivalent way forward either on a stand-alone basis or as a PCC or even a syndicate at Lloyd’s.

The insurance industry is vast and different solutions for different situations will be required. To my knowledge Black is attempting to become the first or one of the first entirely blockchain/cryptocurrency insurance networks in tandem with matching risk bearing capital to specific insurance portfolios. It opens avenues for new forms of risk bearing capital with the potential to create some fascinating opportunities.

Scale is important, in that a small to medium sized insurance company, syndicate at Lloyd’s or cell of a PCC needs reinsurance with a financially sound reinsurer. The role of reinsurance in these circumstances is compatible with the Black business model.

There are practical and regulatory issues. With innovation and working with Regulators and established insurance entities we are confident that they will be surmounted and are following your progress with interest.

The huge potential of being something extraordinary and big. A game changer in the broader sense in many different aspects — innovation, technology, business, social. The business model is not limited, it has many stakeholders with guaranteed benefits for all of them — better insurance products for end-users, new investment opportunity for investors, and last but not least — the new business and innovation possibilities for insurance entrepreneurs ie brokers.

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