Blockchain Insurance marketplace
IndemnityBlock is an online blockchain insurance marketplace where organizations can setup captive insurance companies. The project is near completion and on track to generate revenue in Q2 2022.
A captive insurance company is a private insurer that is typically owned by the organization it insures.
Benefits Of A Captive
- Lower Premiums
- Enhanced Coverage
- Profit Centre
Although captives would benefit many organizations, they are out of reach for most organizations due to:
Minimum Capital Requirements
Onerous Administrative Burden
Required Expertise To Operate
IndemnityBlock is an online platform to make it easier and less expensive for organizations to setup captives by:
Reducing Capital Requirements
In order to be licensed, captive insurance companies need to meet minimum capitalization and reserve requirements. Minimum capitalization is the amount of money before the license will be granted and reserve is the pool of funds used to pay claims. For group and association captives, this is the most challenging requirement, and one that is solved by IndemnityBlock through the decentralized finance (“DeFi”) Ocean Falls Exchange.
Simplifying Captive Setting
Insurance program setup includes feasibility studies, actuarial reviews, legal, security, accounting and other associated administrative costs. Obtaining regulatory approval alone is a time consuming, expensive and laborious process. Ocean Falls Indemnity offers a one-stop shop for captive setup, including regulatory approval.
Providing Ongoing Management
Once established, IndemnityBlock will be responsible for managing the information flow between all the professional service providers of the captive and the captive owner. Additionally, it serves as the first point of contact with the regulators.
Ocean Falls Exchange
The Ocean Falls Exchange (Exchange) is a Decentralized Exchange that makes it possible for captives on the OFI platform to be funded.
The Exchange operates without an intermediary utilizing smart contracts which are programs that execute the terms of the funding contract between cryptocurrency holders and the financial institutions issuing the Standing Letter of Credit for the min capitalization and reserve.
Exchange Capital Flow
Lenders earn interest on their crypto assets by investing through smart contracts on the Exchange.
Letter of Credit
When funds are received, the smart contract triggers the issuance of a Letter of Credit which is used to meet regulatory capital and reserve requirements.
With reserve and minimum capitalization requirements met, the captive is funded and can write insurance.