Co-Founder of Black Insurance Discusses Company Vision for Blockchain in Insurance, and Partnership with Fineqia (CSE

FNQ) (OTC: FNQQF) (Frankfurt: FNQA) - Seite 2

From there on, I founded Insly, an insurance management software that is being used by more than 300 firms across 40 countries. One of the main purposes of this software is to address the inefficiencies and friction that selling and managing insurance is facing - it's a lot. We're doing a great job at fixing what is state-of-the-art in insurance today but I've come to understand that the insurance industry needs a more fundamental fix. 

As an example, an insurance policy is recorded in half a dozen or more separate information systems during its life cycle and then maintained by participants including: Brokers, wholesale brokers, insurers, reinsurers, and in some case regulators. All of these systems must be reported between and reconciled, information needs to be rekeyed, complex interfaces between the systems need to be built and so forth. It's hard to measure conclusively but our estimate is that as much as 20% of each insurance premium is burnt on this essentially worthless "busyness".

We also. routinely see opportunities in the insurance sector that don't see the light of day as there is so much friction between underwriting, product design and distribution. If you have a great idea for a new insurance scheme, it can take you years and millions [of dollars] to get it on the market - if you make it at all. You might have noticed that while the rest of the world is changing at a breathtakingly quick tempo, the insurance industry has remained pretty much as it has always been. Now you know why. 

Q: Investorideas.com  

There have been a lot of discussions on how blockchain can disrupt the insurance sector. Two main focuses are reinsurance through blockchain as well as fraud and prevention. Can you give us more insight into how these two aspects could benefit? 

A: Risto Rossar, Co -Founder, Black Insurance  

On the most basic level, blockchain can bring two types of benefits to insurance. The one most widely discussed has thus far been what we call "blockchain based policy administration". I described above how all participants in the insurance game are maintaining their own ledgers, constantly reporting back and forth. Blockchain is a shared ledger by its very definition. Writing the entire business on such ledgers while maintaining the data privacy, has the potential to create a "self-reporting" business. Certain transactions could also be automated by using smart contract technology. Think of having a travel insurance claim settled automatically when a public data source indicates a flight has been delayed.