Insurance IS Infrastructure
Let’s get right to it, shall we:
Blockchain Investments in 2023:
C3: DEX, $6M
VitaDAO: research funding DAO, $4.1M
MSafe: digital wallet, $5M
Coincover: digital asset protection, $30M
Obligate: bonds and commercial paper, $8.5M
Hypernative: Crypto Security, $9M
Insurtech Investments in 2023:
Evertas: Digital Asset Insurance, $14M
Propeller Bonds: MGA, $6.4M
Liberate: Claims and Underwriting Platform, $7M
Guardz: Cybersecurity, $10M
Pathpoint: Digital Insurance wholesaler, $12.5M
What Does it All Mean?
I see these investments and I’m super excited for the future. The future of Nimblr and of blockchain tech. Why? All of these investments show a genuine demand interest in security, insurance, and utility. These are areas that show continued growth:
In 2021, digital insurance outpaced more traditional insurance at a 70% higher growth rate.
The global digital insurance market is expected to reach $279 Billion by 2030.
DeFi is expected to reach $232 Billion by 2030.
We’ve seen it before. The insurance industry is often a leader in global economic expansion. As reported by Insurance Information Institute, insurers help grow the economy via:
sponsoring and promoting knowledge and activities that save lives and protect and preserve property
lessening the cost of unexpected losses by “making people whole” as quickly as possible
protecting capital by spreading and diversifying transferred risk
providing social benefit through workers comp, catastrophe coverage and the rebuilding of livelihoods
protecting economic interdependence by insuring supply chains, which become increasingly vulnerable with more complex technologies
transferring risk allows for capital infusion and working capital in the economy
providing critical security to the borrowing process; with insurance, lenders are more likely to provide funding for large purchases
I’m proud to say that Nimblr is continuing to build on the noble mission of insurance — and remove the inefficiency and bloat that has troubled the industry.
sponsoring and promoting knowledge: Learn to Earn and other education intitiative to build a safer and more secure new global economy
lessening the cost of unexpected losses: Building new risk models and rating engines for new and emerging risks; leveraging these dynamic models for risk-based dynamic real-world insurance pricing
protecting capital: A way forward to protect real-world and digital assets through economically viable risk transfer and security
providing social benefit: A democratized insurance process where all members of the insurance process are rewarded; where insurability is not subjective nor exclusive
protecting economic interdependence: Transparent and transferrable underwriting scoring to enable safety between projects and chains
transferring risk: Projects can transfer their risk to their users in a cost effective way; users transfer that risk to the insurance marketplace; alternative risk transfer methods replace capital ruin risk with inflation risk for a further equitable process
providing critical security to the borrowing process: Insurance for your digital assets increases likelihood of loan approval; your investment in insurance is an NFT with a buyback provision — allowing investors the option to use their investment as collateral
Infrastructure <> Insurance
We are seeing investment activity in the digital and embedded insurance space. We are seeing investment activity in “infrastructure” blockchain projects. Insurance is not always looked at as an infrastructure solution, but I believe that the reasons above place it squarely in the critical and necessary infrastructure zone. Take Obligate for example:
“Obligate is bringing new innovation to help bridge the worlds of traditional finance and DeFi. Through their platform, Obligate is adding utility and a compliant regulatory framework to the emerging real-world asset DeFi market”-Wyatt Lonergan, Circle Ventures
And what does Obligate do? They are using smart contracts and tokenization to issue on-chain bonds and commercial paper. This reduces both the time and cost of issuance.
Critical infrastructure, indeed.
“Like the internet before it, we expect the blockchain will underpin some of the largest businesses out there, including in finance. Obligate’s vision of using the efficiency and speed of blockchain embedded in a structure that still supports the core needs and requirement of existing debt markets is powerful.”-Ken Seiff, Managing Partner Blockchange Ventures.
What is Nimblr doing? Using smart contracts and tokenization to issue on-chain insurance and commercial insurance marketplace. This reduces both the time and cost of issuing insurance and filing and paying claims.Critical infrastructure, indeed.
If you’re interested in chatting about Nimble, learning more, or just talking about the market in general — please, as always, reach out: firstname.lastname@example.org.It certainly does take a village — and we are always looking to add to the valuable village of investors and thinkers that we already have.
Feb 13, 2023