Democratising INSURANCE

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2 SEED CAPITAL RAISED Over 18 years of experience in insurance software Democratising INSURANCE ABOUT US Black is a digital insurance company on blockchain. Black connects insurance entrepreneurs with capital. It leverages blockchain technology to bring democracy, transparency and cost effectiveness to an established field that is struggling to keep up with the demands of the digital era. PROBLEMS Currently there are three parties in the insurance value chain - customers, capital and insurance entrepreneurs1. The way the insurance industry works today does not fulfil the needs of any of these parties sufficiently Insurance entrepreneurs want to get innovative products to market but can t. Customers want to have insurance cover that match their needs but can t. Capital wants to seek stable returns from insurance portfolios but can t. Currently, there is a lot of bureaucracy involved and time to market is measured in years. The product creator and customer are too far apart. New times bring new risks and customer expectations. Insurance industry is failing to keep up with the pace of customers needs. Investing in insurance is only open for institutional investors. This means that smaller and retail investors don't have a way in. Footnote for insurance professionals: for simplicity (and we like simplicity) in this document we call insurance agents, brokers, MGAs entrepreneurs. 1

3 PROBLEMS They can t because insurance industry is hindered with bureaucracy and high transaction fees. The system that is currently in place is not effective and there are too many roadblocks in between. For example: As the crypto field is booming, there are also risks that people are facing. Exchanges and wallets get hacked frequently. There isn t insurance cover for consumers that protects them from this risk. Even if small investors wanted to back a startup ready to offer this cover, they cant. The current insurance process looks like this. The customer and product designer are too far apart. PRODUCT DESIGN PRODUCT RECIPIENT BROKER IT System 1 MGA IT System 2 INSURER IT System 3 REINSURER IT System 4 s, excel files exchanged between all parties, resulting in mistakes, bad data quality, lots of work and too many negotiation phases.

4 SOLUTIONS The Black platform creates a blockchain ecosystem for all parties that will bring transparency, democracy and efficiency to the insurance industry. It connects insurance entrepreneurs with innovative ideas to the capital they seek. All policies are written on blockchain, greatly reducing transaction costs and giving everyone an equal playing field for conducting business. Insurance entrepreneurs can establish a virtual insurance company, get the funding and start distributing innovative insurance products. They can do this much faster compared to the way it is done now. Time to market is reduced from 2 years to 2 months. Customers benefit from new products that suit their needs. On top of that as transaction costs are lower, customers can enjoy more affordable prices. New and innovative products get to market faster. Customers have more options to choose from. For example: An insurance startup CryptInsure has recognised the need for insuring crypto wallets hosted by third parties. They list their product on the Black platform after it has been approved by the Black experts. A syndicate focusing on crypto products recognises the product and decides to invest. CryptInsure gets the needed funding and starts to distribute the product to customers. All done in 2 months. Investors can crowdfund insurance syndicates without the need to have vast amounts of capital. Even smaller investors can put their investments into the pot and enjoy the return from stable and reliable insurance portfolios.

5 OPPORTUNITY Insurance companies have costs for admin expenses and net profit of Gross Written Premium. The industry average is 20%. Black can bring the costs down to 5-10% with blockchain technology. $4 $800 $600 Insurance industry Admin costs on average up to Potential global savings up to trillion $4 trillion billion $800 billion billion $600 billion In Estonia for example, administrative expenses amount to 19% of gross written premiums. Consider that gross written premiums per year amount to c. EUR 490m in Estonia, the admin costs amount to 85.5 million. Black can bring these costs down to 5% saving the industry 63m.

6 HOW IT WORKS Entrepreneurs list their insurance products. Investors can form and capitalise investment syndicates by investing in tokens and allocating capital between different products. Policies are written on blockchain as smart contracts. Users have access to immutable data (premiums sold, claims, profit) on the platform. Profits are automatically distributed amongst the token holders. Black Insurance will be issuing two types of tokens: Black Platform Token (BPT; utility token) powers the infrastructure, allowing access to system, funding and technical voting for future development of the platform. All the users need to pay in BPT to transact business on Black platform, thus the bigger the business on Black platform, the higher the demand for BPT. Black Syndicate Tokens (BST; security token) (to be issued later when platform is ready). BST, one per syndicate, token cap depends on amount of capital needed. BST is an investment into the insurance capital that generates income based on the profitability of the insurance portfolios where this specific syndicate invests. BST tokens are security tokens backed with insurance capital in fiat currency. BST1 Broker 1 Syndicate 1 BPT BST2 Broker 2 BPT Syndicate 2 Broker 3 BST3 BPT Broker 4 Black Platform Investors Syndicate 3 BPT BST4 Syndicate 4 Investors

7 WHO IS IT FOR The Black Insurance is a B2B platform. It changes how insurance is made - the way insurance products are developed and capitalised. It is built for insurance industry participants, including brokers, MGAs, insurers and investors. MILESTONES 2 mln + Launch the Black platform and cooperate with existing 2 MLN insurers in the EU 30 mln + Launch the Black platform and become a licensed insurer in EU, US and Asia. 30 MLN 10 MLN 10 mln + Launch the Black platform and become a licensed insurer in the EU

8 MILESTONES HARD CAP $45 MILLION Use of funds & Token distribution 20% 35% IT & Development 35% If $2 mln+ raised 10% 20% Marketing & Sales 15% Admin & Operations 10% Legal 15% 20% Reserve & Unexpected Costs 20% 18% IT & Development 18% 20% Marketing & Sales 30% 10% Admin & Operations If $10 mln+ raised 20% 7% Legal 15% Reserve & Unexpected Costs 15% 7% 10% 30% Licensing insurer 1% 6% 67% tokens distributed at sale Token Distribution 26% team 26% 67% 6% advisors 1% bounty TEAM + CREDIBILITY The team consists of insurance industry veterans and blockchain experts. It is a great mix of inside knowledge of the insurance industry, expertise on blockchain technology and the crypto space. Founders have over 18 years of experience in insurance software and saw the pressing need for a solution that would democratize the field through technology. Meet the team.

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