Fineqia International in Vancouver is taking an equity allocation in digital insurance start-up Black Insurance.
Based in Estonia, Black is looking to become a licensed insurer – enabling the underwriting of new insurance policies through insurance syndicates, similar to the Lloyd’s market. Through a blockchain platform, Black connects insurance brokers/MGAs/agents directly with capital, allowing them to essentially launch their own virtual insurance companies without the need for carriers.
A release said that Black will price the risk of specific syndicates and sell fractional ownership in such pools in the form of tokens, which represent the unit value of each syndicate’s expected financial return. This allows for a more efficient and transparent way in which to participate in insurance syndicates, since the transaction records will be recorded on the blockchain for reference.
Fineqia’s strategic investment in Black allows the former to “strengthen its existing pipeline of asset-backed debt securities that will be offered to investors on its platform,” a release said.
“We are excited to back Black, which allows for a wide variety of investors to participate in a high-quality insurance finance product,” said Fineqia CEO and Black Insurance co-founder Bundeep Singh Rangar.
“Black represents everything we want from issuers on our platform: innovation, disruption and ambition,” added Rangar. “We believe that insurance is one sector ripe for blockchain disruption and Black Insurance has the right team experience to make this happen.”