An insurance wrap is a type of insurance against an asset or multiple assets "wrapped" all into one. It is a policy that is used for businesses, commodities, and other business proposals such as real estate, precious gems, or in-ground assets.
If you have a 100 million dollar asset, such as diamonds, and you have a business, you can "wrap" the asset and entity together for protection in future based protection based on a determined lessor value of the combined asset and/or entity. Insurance wraps are not complicated. The complicated part is getting an insurance company to do it for you. It is paramount for the insurance company to know what they are going insure for millions of dollars. Therefore, a lot of documentation and proof is required.
There are many companies claiming to put a policy or insurance wrap on your assets and once complete your policy is able to get a loan or instrument against it, then go into a program. For example, let's say you have 100 million dollars in diamonds. The diamonds are not of bank specifications and you decide to get an insurance wrap on the diamonds then bring the policy to a "program" to trade the value of the policy. The other popular assets are gold mines, copper mines, bonds, etc.
Why are we bringing up insurance wraps? Insurance wraps are what they are, insurance policies to protect your assets or business entities against loss. No one in the history of the world has taken assets, get an insurance wrap, bring then to a program and make money. If that was the case you could get an insurance wrap on just about anything and try to do the same.
We personally know of someone that has tried for over three years to place an insurance wrap on a gold mine. It even was to the point he was "getting paid" next month. Guess what? No payment ever happened. We do not care how many gold mines you own. You will not be able to place an insurance wrap on a mine, bring it to a program, then make money. The mining operation is the miners problem and they need to know it is different then the level of higher private finance.
In conclusion and the point we are trying to make; there is no successful program which is going to place an insurance policy or leverage against it to program place it. It is a futile attempt with those that are asset rich and cash poor.