Blockchain technology company The Bitfury Group and risk and insurance advisory firm Risk Cooperative have announced a strategic partnership to pioneer blockchain applications in the US$60 billion insurance intermediation market.
Announced on Friday, the partnership will leverage Bitfury’s expertise in designing and implementing full scale blockchain applications across a wide range of sectors and Risk Cooperative’s comprehensive insurance placement platform and partnership model with global insurers to spur adoption of blockchain solutions, Bitfury said in a release. The partnership is intended to enhance trust, transparency, efficiency and security in the origination, underwriting, quoting and transfer of insurable risk.
“With Bitfury as a strategic partner, combined with our commitment to innovation and improving resilience, we are confident that we can serve as first movers in driving blockchain’s adoption across the entire insurance value chain,” said Dante Disparte, Risk Cooperative’s founder and CEO, in the release. “This is no small feat, but with Bitfury’s strategic and operational leadership in blockchain technology, we can be bold in our advance.”
Valery Vavilov, CEO of The Bitfury Group, added that blockchain technology can bring transparency and security to the insurance industry, and can be a catalyst for new insurance business models. “We look forward to harnessing blockchain to take our ideas from concept to reality,” Vavilov said.
Despite the scale of the global insurance industry, which writes more than US$5.5 trillion in annual premiums, most natural, man-made and emerging risks remain unfunded or underinsured, Bitfury said in the release. This underinsurance challenge is hindered by the legacy systems and technologies that dominate established insurance providers, Bitfury suggested.
“Bitfury and Risk Cooperative believe that blockchain is a foundational technology in designing new levels of access that can help improve insurance company risk appetite, customer proximity and trust,” the release said. “Additionally, the partnership will serve as a catalyst to established industry players, helping them overcome organizational and cultural apprehension to blockchain by serving as an implementing partner and advisor.”
Bitfury, which has offices in Amsterdam; San Francisco; Washington, DC; and London, U.K., said in the release that it is “one of the largest private infrastructure providers in the blockchain ecosystem.” It develops and delivers both the software and hardware solutions necessary for businesses, governments, organizations and individuals to securely move an asset across the blockchain.
Risk Cooperative is a specialized strategy, risk and insurance advisory firm licensed to originate, place and service innovative risk transfer and insurance solutions in all 50 states, DC and Puerto Rico. The company helps organizations address risk, readiness and resilience through a comprehensive service and solution offering, “in partnership with leading insurance companies and value-adding partners.” Risk Cooperative is headquartered in Washington, DC alongside its partner Ridge Global.