Fineqia International invests into blockchain-based InsurTech Black Insurance

July 10, 2018

Fineqia International has made an undisclosed investment into blockchain-based digital insurance startup Black Insurance.

The investment from Fineqia’s investment represents less than 1 per cent of its market capitalisation.

Black hopes to become a licensed insurer capable of underwriting new insurance policies through syndicates akin to the Lloyd’s market, the company said. Insurance brokers and agents will be able to use the app to create bespoke insurance schemes quicker and cheaper.

Estonia-based Black Insurance transfers risk directly from clients (those insured) to its financial backers (syndicate token holders). Through this, the company hopes to minimise inefficiencies, store all data in blockchain, increase transparency through smart contracts, and improve innovation.

Black will use two tokens, platform and syndicate. Its platform token powers the infrastructure, giving users access to the platform and to conduct votes on system updates, as well as managing insurance policies. Syndicate, is an investment in insurance capital.

The company is working towards an ICO later in the year, to distribute its tokens that can be used for transacting on the platform. A hardcap of $45m has been set for the ICO, while a softcap of $2m has also been implemented.

If the sale raises over $10m, the 30 per cent of proceeds will be put towards getting its insurance license, with the remaining proceeds being used for IT development, marketing, legal, and admin, among other roles.

Capital from the round will be used to strengthen its existing pipeline of asset-backed debt securities which will be offered on the platform.

Black Insurance founder Risto Rossar said, “There is a lot of appetite in the insurance industry to innovate and cross the threshold to a radically new era.

“We already have dozens of requests from brokers across the world to join the platform. They have grown impatient of the innovation-averse, slow mindset dominating the industry, and see Black as a way to make their aspirations a reality.”