Skip to main content

​
License Types

There are currently two license types: (We are working on adding more license types in order to unlock new guarantee use cases.)

​
Surety Licenses

The main feature of a Surety license is that, in the event of a claim, Anzi responds using its own funds. This makes it the closest equivalent to a traditional insurance product. This license type is designed primarily for productive-use loans, since premiums are usually lower compared to other structures.

​
Specific Characteristics

  • Anzi’s own resources: Claims are paid directly from Anzi’s balance sheet (not from client reserves as FIRST LOSS license).
  • Coverage and premium: Coverage per loan, maximum portfolio coverage, and premium amounts are defined by Anzi.
  • Lower premiums: Premiums are typically lower, making this model attractive for productive loans.
  • Claim process: When a default occurs, the claim enters a pending review stage. Anzi validates all claim details (credit conditions, promissory notes, collection attempts, etc.), and the client must endorse the debt to Anzi so that Anzi can continue with the collection process.
  • Default response: In case of default, Anzi pays the higher of:
    • The outstanding principal balance up to the default date, or
    • 50% of the original principal amount.
  • Periodic reviews: Anzi regularly reviews license performance (default rates, coverage usage, and other metrics) to adjust coverage and guarantee pricing as needed.

​
First Loss Licenses

The main feature of a First Loss license is that, in the event of a claim, the amount paid to the financial institution comes from the reserve fund that the client has built using the premiums they have paid.

​
How is the reserve built in a First Loss license?

  • Premium definition: The financial institution defines the percentage of each loan that will be charged as a premium. Anzi can assist in this process if required.
  • Transfer to Anzi: This premium amount is transferred to Anzi and deposited into the reserve associated with that license.
  • Administrative fee: Anzi deducts its administration fee before depositing the funds into the reserve.
  • Claims paid from the reserve: 100% of claim payments are made using the money available in this reserve.
  • Coverage limit: Coverage is provided only up to the amount available in the reserve, and stops once the reserve is exhausted.

​
Specific Characteristics

  • Financial institution’s resources: Claims are paid directly from the financial institution’s reserve fund.
  • Coverage and premium: Coverage per loan, maximum portfolio coverage, and premium amounts are defined by the financial institution, and depend on the funds available in the reserve.
  • Claim process: When a default occurs, the claim does not go through any validation process. It is automatically approved, and the payment depends on the funds available in the reserve. The client must endorse the debt to Anzi so that Anzi can continue with the collection process.
  • Default response: In case of default, Anzi pays the percentage defined by the client.

​
Surety vs First Loss — Quick Comparison

DimensionSURETYFIRST_LOSS
Funding source for claimsAnzi’s own funds (balance sheet).Client’s reserve fund held by Anzi.
Who defines coverage & premiumDefined by Anzi (per-loan caps, portfolio caps, premium).Defined by the financial institution; constrained by the reserve balance (Anzi can assist).
Typical premium levelTypically lower; oriented to productive-use loans.Flexible; often calibrated to build and sustain the reserve.
Claim validationPending review by Anzi (documents, collection attempts, etc.).Auto-approved; payment depends solely on available reserve.
Payout logicPays the higher of: (i) outstanding principal up to default date, or (ii) 50% of original principal.Pays the percentage defined by the client, limited by funds in the reserve.
Coverage limitPer-loan and portfolio caps set by Anzi.Up to the current reserve balance; stops when the reserve is exhausted.
Debt assignment after payoutRequired: client endorses the debt to Anzi for collection.Required: client endorses the debt to Anzi for collection.
Cash flow of premiumsPremium paid to Anzi under license terms.Each premium is sent to Anzi; Anzi deducts the agreed admin fee and deposits the rest into the reserve.
Pricing/coverage adjustmentsPeriodic performance reviews by Anzi (defaults, usage) may adjust coverage/pricing.Client can adjust premium strategy; reserve level dictates practical coverage.