Black Insurance funding round latest example of growing insurtech innovation

One area of alternative finance which may be flying under your radar is insurtech. Admittedly late to the technology party, the industry is moving …

One area of alternative finance which may be flying under your radar is insurtech. Admittedly late to the technology party, the industry is moving forward as companies begin to apply lessons learned in other sectors to what had been a fairly stable sector.

Big data and artificial intelligence are being leveraged to provide better and quicker underwriting capability. technologies are also being developed that allow you vehicle insurance premiums, for example, to fluctuate based on whether or not you are in town to drive it.

Blockchain technology will likely surpass those in how it impacts the insurance sector. Consortiums are leveraging permissions to save on collective onboarding costs by letting competitors get basic information everyone needs to provide service, yet they do not get to see the specific relationship that client has with another provider.

As with any technology, one key validator is when new technology companies get acquired. The latest case came across the wire earlier today when OTC-listed Fineqia International announced the acquisition of a significant stake (in excess of 20 percent) in Black Insurance, a digital, blockchain-based insurance startup. This is Fineqia’s second time funding Black Insurance.

Founded by Risto Rossar in 2018, Black plans to obtain an insurance license and enable the underwriting of new insurance policies via insurance syndicates akin to the Lloyd’s market. Brokers and agents will be able to develop offerings in a fraction of the time.

“Fineqia is pleased to have topped its original investment in Black in this most recent investment round,” Fineqia CEO Bundeep Singh Rangar said in a statement. “Black represents everything we want from issuers: innovation, disruption and ambition. And, we believe that insurance is one sector ripe for blockchain disruption and Black Insurance has the right team experience to make this happen.”

See also

Black offers a marketplace where investors and insurance underwriters can directly trade with one another.

Image by Gerd Altmann from Pixabay

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Fineqia Increases Stake in Insurtech Black Insurance, a Platform to Tokenize Insurance Policies

Fineqia International (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) has increased its equity stake in Black Insurance, an Insurtech that utilizes …

Fineqia International (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) has increased its equity stake in Black Insurance, an Insurtech that utilizes blockchain tech to tokenize the asset. The exact amount of the investment was undisclosed. This is the second investment from Finequia.

According to a release, Black intends to become a licensed insurer and enable the underwriting of insurance policies via insurance syndicates similar to the Lloyds market. Black wants to open the insurance market to crowdfunding via security tokens via a first-of-a-kind investment opportunity.

Fineqia CEO Bundeep Singh Rangar said he was pleased to have “topped its original investment” in this funding round.

“Black represents everything we want from issuers: innovation, disruption and ambition. And, we believe that insurance is one sector ripe for blockchain disruption and Black Insurance has the right team experience to make this happen.”

Rangar is listed as a co-founder of Black.

Black states that by establishing a marketplace where investors and insurance underwriters can directly trade with one another, the company will minimize transaction costs.

According to their roadmap, a beta platform will launch in late 2019 with the first issuance of a tokenized insurance policy sold in December. An EU-wide insurance license is predicted for 2020.

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Flipkart co-founder and other top names join AngelList’s first investment syndicate in India

… for $16 billion last year — and VCs Salil Deshpande of Bain Capital Ventures, Matrix India trio Avnish Bajaj, Tarun Davda and Vikram Vaidyanathan, …

A little over a year after it introduced Syndicates to the India market, AngelList — the U.S. service that helps connect companies with investors — is rolling out its own fund in the country with the backing of some stellar names.

Dubbed ‘The Collective,’ the syndicate includes money from Flipkart co-founder Binny Bansal — Flipkart, of course, sold a majority stake to Walmart for $16 billion last year — and VCs Salil Deshpande of Bain Capital Ventures, Matrix India trio Avnish Bajaj, Tarun Davda and Vikram Vaidyanathan, Navroz Udwadia from Falcon Edge Capital and Rahul Mehta of DST Global. There’s also involvement from funds that include Kalaari Capital, FJ Labs and Beenext.

The Collective will be managed through an investment committee that is Utsav Somani, a partner with AngelList who launched the service in India, former 500 Startups India partner Pankaj Jain and Nipun Mehra, who has worked with Sequoia Capital, Flipkart and payment startup Pine Labs.

The size of the fund is undisclosed, but Somani told TechCrunch it will likely back 60-80 companies over the next 12-18 months. Syndicates interested in engaging The Collective can draw up to $150,000 per deal, according to an AngelList India announcement.

“The fund will exclusively deploy on AngelList India. This is to give more power to the most active GP base we have through our syndicate leads,” Somani explained.

Utsav Somani launched AngelList’s syndicates product in India last year and he will now look after the company’s first managed fund in the country

More generally, he said that the first year of Syndicates in India has seen more than $5 million deployed across more than 50 publicly announced investments, including deals with BharatPe, HalaPlay, Yulu Bikes and Open Bank. Six of those startups have already raised follow-on capital. Somani said AngelList India Syndicates have invested alongside well-known funds that include Sequoia Capital India, Matrix Partners India, Omidyar Network, Blume Ventures and Beenext.

To date, AngelList has helped deploy some $1.09 billion to over 3,100 startups, according to its website. The company claims its portfolio has raised close to $9 billion in follow-on funding. AngelList is primarily focused on the U.S. market, but India is fast becoming a majority priority. Like the U.S., the Indian service is open only to accredited investors so it isn’t a crowdfunding service.

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Ascot and Beazley Launch $50M Insurtech-Linked Cargo Consortium for SMEs

Ascot and Beazley announced the launch of a Lloyd’s-based cargo consortium, which uses insurtech solutions to help manage risk and claims …

Ascot and Beazley announced the launch of a Lloyd’s-based cargo consortium, which uses insurtech solutions to help manage risk and claims performance.

Led by Ascot and Beazley, the consortium brings together a range of cargo carriers that will provide a maximum of $50 million capacity. It is aimed at the cargo business of small-and-medium-sized enterprises (SMEs), which has traditionally faced high associated expenses due to the nature of the subscription market.

This launch will allow brokers to provide their clients with quality underwriting and claims management in a cost-efficient way, further cementing the competitive position Lloyd’s holds in the global cargo market, said Ascot and Beazley in a statement.

Insureds will have the option of using electronic cargo monitoring devices developed by Denver-based insurtech firm Parsyl. The devices monitor cargo accumulation and collect data, which can assist in risk management and claims. The use of these devices will help both the consortium carriers and provide data feeds to insureds.

Denver, Colo.-based Parsyl is a graduate of the Lloyd’s Lab program, which is designed to help embed technology start-ups in an insurance environment.

“This consortium shows how syndicates can come together in a subscription market to provide coverage in a cost-efficient way for smaller premium business,” commented Andrew Brooks, group CEO of Ascot Group, the Bermuda-based specialist re/insurer. “Recent years have been difficult overall for the cargo market, but this initiative will be transformative for insureds, their brokers and Lloyd’s carriers.”

Tim Turner, group head of Marine at Beazley, said: “The London insurance market’s origins are in marine and over the years it has adapted to the changing needs of the sector. This new consortium shows how the London market can come together to combine underwriting expertise and cutting-edge technology for the benefit of our customers.”

“This is precisely what the Lloyd’s Lab has been set up to do,” said Trevor Maynard, head of Innovation, Lloyd’s. “I’m thrilled to see our syndicates utilizing the lab to generate new ideas and deliver the next generation of insurance products and services for the benefit of our customers.”

About Ascot Group and Beazley

Owned by Canada Pension Plan Investment Board (CPPIB), Ascot Group comprises Ascot Underwriting, the managing agent for Syndicate 1414 at Lloyd’s; Ascot Reinsurance Co., a Bermuda-based specialty reinsurer; Ascot Insurance U.S., an admitted and surplus lines business; and Ethos Specialty Insurance Services, a New York-based managing general underwriter (MGU).

London-based Beazley plc is the parent company of specialist insurance businesses with operations in Europe, the U.S., Canada, Latin America and Asia. Beazley manages six Lloyd’s syndicates.

Source: Ascot Group and Beazley plc

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Beazley-Ascot launch $50m insurtech linked Lloyd’s cargo consortium

Bermuda-based re/insurer Ascot and specialty insurer Beazley have come together to launch a Lloyd’s based cargo consortium that uses insurtech …

Bermuda-based re/insurer Ascot and specialty insurer Beazley have come together to launch a Lloyd’s based cargo consortium that uses insurtech solutions to help manage risk and claims performance.

Led by Ascot and Beazley, the A2B consortium brings together a range of cargo carriers that will provide a maximum of $50 million capacity.

It is aimed at SME cargo business, which has traditionally faced high associated expenses due to the nature of the subscription market. The companies said this launch will allow brokers to provide their clients with quality underwriting and claims management in a cost efficient way, while further cementing the competitive position Lloyd’s holds in the global cargo market.

Insureds will have the option of using electronic cargo monitoring devices developed by Denver-based insurtech firm Parsyl. The devices can monitor cargo accumulation and collect data, which can assist in risk management and claims. The use of these devices will help both the consortium carriers and provide data feeds to insureds. Parsyl is a graduate of the Lloyd’s Lab program, designed to help embed technology start-ups in an insurance environment.

“This consortium shows how Syndicates can come together in a subscription market to provide coverage in a cost efficient way for smaller premium business,” said Andrew Brooks, Group CEO of Ascot. “Recent years have been difficult overall for the Cargo market but this initiative will be transformative for insureds, their brokers and Lloyd’s carriers.”

Tim Turner, group head of marine at Beazley, said: “The London insurance market’s origins are in marine and over the years it has adapted to the changing needs of the sector. This new consortium shows how the London market can come together to combine underwriting expertise and cutting-edge technology for the benefit of our customers.”

Trevor Maynard, head of innovation at Lloyd’s, added: “This is precisely what the Lloyd’s Lab has been set up to do. I’m thrilled to see our syndicates utilising the lab to generate new ideas and deliver the next generation of insurance products and services for the benefit of our customers. The fact that the lab can attract such high calibre tech talent and ideas from around the world just goes to show that Lloyd’s continues to lead the way on insurance innovation.”

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