Black: Bridge between Insurance Brokers and Investors.
May 31, 2018 11:01 am,
Black is an insurance platform which acts as a bridge between insurance brokers and investors. It uses the blockchain to transfer risk directly from the client to financial backers or the token holders.
In traditional insurance system there are always delays, high cost and bureaucracy involved. People don’t get proper returns. Similarly, some of the problems are discussed below:-
- Products controlled by insurers– Products are designed by the insurers itself which are far from the actual demand of insured. There are lot many parties involved in the system like Re-insurers, Insurers, MGA’s, Agents, Brokers, Third Parties and Wholesale Brokers and files are exchanged between these parties so there are more chances of mistakes and bad data quality.
- High cost– The lot of costs is involved in administration.
- Barriers to entry– Only big institutional investors are allowed to participate, the door for retail investors remains closed.
Black is the solution to all the above problems. Some of these are discussed below:-
- Product to brokers– The brokers can set up their own virtual insurance company in a month.
- A general pricing model will be provided to Brokers for each type of insurance product. The model will provide a default price for the product, but Brokers will be able to change the prices by adjusting some of the model factors.
- Lower cost– This system lowers the expenses as brokers are connected directly to the capital.
- Operating expense and cost of capital will be lowered by building blockchain solution
- Way in for everyone– Give retail investors an opportunity to invest in stable insurance portfolios.
- Minimizing all inefficiencies.
- Storing all data securely in the blockchain
- Transparent business operations using smart contracts.
Black Insurance uses two types of tokens:
- Black Platform Token (BLCK) – BLCK provides access to the platform and for conducting voting on system updates to the platform. All platform users will use BLCK for managing insurance on the Black platform, and demand for BLCK will increase as more insurance business is conducted on the platform.
- Black Syndicate Tokens (BST) – It is issued when the platform is ready. BST is an investment in insurance capital, and a specific BST is created for each syndicate (security token), the profitability of the insurance portfolio for a specific syndicate will pass through to the holders of its BST.