Black helps Brokers launch insurance products on blockchain

Learn more about how the blockchain-based platform Black Insurance is trying to connect insurance entrepreneurs with capital to disrupt the insurance market.

Louis Beul


Photo by rawpixel on Unsplash

Black is a digital insurance company on blockchain. Its main focus is to connect insurance entrepreneurs with capital. It uses blockchain technology to make the 21st century insurance market more transparent, democratical and efficient for insurance entrepreneurs, their clients and potential investors. Their platform enables quick and easy implementation of innovative insurance products.

Target groups

According to the Black team, there are three key parties in today’s insurance market that are suffering from the problems of the industry:

  1. Insurance entrepreneurs
    Today’s insurance market is dominated by bureaucracy, hierarchies and protracted processes. These and other difficulties often lead to the failure of many concepts, startups and innovative products.
  2. Customers
    The demands and needs of customers towards insurance have changed significantly in recent years. Traditional insurance offerings no longer live up to these expectations, which is why many customers in vain search for alternative offerings.
  3. Investors
    Today, investments in the insurance market are only possible for large and institutional investors. Smaller or even private investors have no opportunity to participate.

Black’s solution

As mentioned earlier, Black’s answer to these problems is blockchain. With the help of this innovative technology insurance entrepreneurs will be brought together with the capital they are looking for.

Through this process, Black Insurance expects to save a tremendous amount of time in the establishment and market maturity of innovative insurtechs, as well as a huge cost saving through the use of blockchain technology

Last but not least, investors also benefit from this concept as it allows them to invest in the crowdfunding of innovative insurance projects with a decent return.

Technical implementation

To achieve the above goal, Black uses two different tokens. The so-called Black Platform Token (BLCK) powers the infrastructure of the actual platform and provides capital for future developments and processes.

All transactions made on the platform must be settled by BLCK in order to adjust the platform’s capitalization. It’s used by Black users to pay platform fees and services. The company guarantees that by January 1st 2021 the service fees paid with BLCK will be at least 20% cheaper than those paid in any other currency.

Potential investors are able to group in so-called “Syndicates”, which are comparable to an investment fund. Each member of the Syndicate will receive tokens in exchange for the investment made. These tokens, called Black Syndicate Tokens (BST), will be issued when Syndicates are launched or generate initial profits to their investors.

Each Syndicate will issue its own Black Syndicate Token. The various BSTs will differ in name, as well as in risk and reward details. Investors will be able to check out the current performance, historical data and expected profitability of each BST, to decide where to invest.

ICO and token distribution

The BLCK pre sales starts on October 1st 2018 and ends after 30 days.
After that, the official token sale starts on November 1st and lasts also for thirty days.
316,250,000 of the total 575,000,000 tokens will be sold in this sales.

The graph below informs about the distribution of the other tokens.

Black Insurance Lightpaper

Source of revenue

In order to make the platform profitably, Black charges fees for the various user actions.

As mentioned above, all of them are to be paid in BLCK tokens.
Black will then sell these tokens back to the market with the goal to cover the costs of operation. Surpluses may be allocated to a reserve that protects the Black Foundation from rising costs or decreasing use of the platform. If the set upper level of the reserve should be reached, there are different usage plans of the excess tokens. For example, these could be used for the entry in new markets or the expansion of the user base.

To further guarantee the scalability of the platform the Black Foundation wants to attract brokers. These brokers are provided with many benefits and opportunities that help them accomplish three basic tasks:

  • Design insurance products for that market
  • Determine the right pricing
  • Sell the product in the region

Benefits and opportunities provided by the Black Foundation are for example the capital for the creation of new products and services, the technology in the form of the Black API or the corresponding user interface, as well as the incredibly important insurance license.

Profitability of brokers

To ensure the profitability of the brokers, the Black Foundation has compiled a catalog of requirements. Black uses at least three of these five techniques to ensure the broker’s profitability:

  • Business plan analysis
    The submitted business plan is thoroughly examined and checked by Black’s and the Syndicate’s specialists of the respective area.
  • Deposit
    To be sure that the broker pursues the same goals as Black, he has to pay a down payment of 5–25% of the targeted GWP (Gross Written Premium) to Black, which will be used to cover costs in case of failure.
  • Community references
    The broker should have at least two positive references from his market environment confirming his insurance and underwriting knowledge and skills.
  • Insurance premium and policies
    To ensure the know-your-customer principle, Black Smart uses contracts based on their experience and accumulated records analyzed by AI.
  • Reinsurance
    Black will use different reinsurance agreements and strategies to share the risk with reinsurers.


Depending on the amount of funding, Black has the following plans for using the funds:

  • Funding of $2+ million
    Black will launch its platform in cooperation with existing insurers in the EU
  • Funding of $10+ million
    Black will launch the platform and become a licensed insurer in the EU by itself.
  • Funding of $30+ million
    Black will launch its platform and become a licensed insurer in the EU, US and in Asia.


  • Black is an insurance startup based on blockchain technology
  • It wants to connect insurance entrepreneurs with capital and investors
  • Black users can benefit from better pricing and more suitable products
  • Investors can participate easily through tokens
  • The platform meets the expectations and needs of today’s insurance industry
  • Black’s further strategy depends on how much money they raise in the ICOs


The team consists of many experts in the field of blockchain, insurance and the crypto space. The founders have over 18 years experience in the insurance software business and saw the need for a platform like Black Insurance.

Photo by Štefan Štefančík on Unsplash

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Louis Beul

CompSci student from Germany who fell in love with coding and the tech industry after pivoting from a traditional career in banking.