When Brian Siemsen saw “tension and fragmentation” when it came to sorting through equine insurance, the insurance mogul and thoroughbred investor was eager to utilise his industry experience to find a solution.
He talks to Tim Rowe about that solution, Furlong Insurance, as well as his burgeoning racing and breeding interests through Black Soil Bloodstock.
For insurance mogul Brian Siemsen, racing has been a welcome outlet to take his mind off the pressures of his day job.
The technology entrepreneur, who founded Claim Central Group in 2000, ramped up his involvement in the thoroughbred industry about six years ago and he has enjoyed a string of success with a batch of well-bred fillies in the ensuing period.
As his exposure grew through his Black Soil Bloodstock empire, managed by Harry McAlpine of Queensland’s Eureka Stud, so too did Siemsen’s observations of inefficiencies in how trainers and studs managed their clients’ annual horse insurance premium renewals.
Siemsen encountered it himself as his Black Soil Bloodstock portfolio of mostly fillies increased in value through the performances of stakes-winning fillies such as Niedorp, Miami Fleiss, The Actuary and Isotope.
Three-time stakes winner Isotope was sold by Black Soil to Yulong for $2.3 million at last year’s Magic Millions National sale while The Actuary was sold privately to Widden Stud.
It was three years ago that Siemsen decided to mix business with pleasure, acting on a “natural sort of instinct”, and come up with what he says is a far easier way to manage equine insurance.
The plan gathered pace just as his current Black Soil flag bearer, the Tony Gollan-trained Skirt The Law, was winning the 2023 Magic Millions 2YO Classic on the Gold Coast for her all-women’s syndicate which includes Siemsen’s wife Brooke.
Siemsen reached out to key connections in the insurance industry who shared his passion for racing, presenting his vision to innovate the sector with advanced automation. Insurance industry figures in their own right, Denis Morrissey, Trent Brown and Matthew Lawrence joined forces with Siemsen as directors and shareholders in Furlong Insurance.
“I saw this tension and fragmentation in the market at the trainer level and the syndicator level of just how long things are taking or how much it costs for trainers to manage these insurance programs,” Siemsen told The Straight.
“I didn't know if I could fix it, but I wanted to map the process as they (administration) were spending an inordinate amount of time and money managing what is an important part of the process.
“If you're someone like me who sees through that from both the technology and automation perspective, I wondered if there was just an opportunity to think about a highly automated approach that would help trainers, syndicators, and some of the big farms.”
"I wondered if there was just an opportunity to think about a highly automated approach that would help trainers, syndicators, and some of the big farms.” - Brian Siemsen
Launched on the eve of the Melbourne Cup Carnival, the Siemsen-backed Furlong Insurance has signed a five-year exclusivity agreement with Prism, one of the leading racing industry communication and technology platforms, to integrate its fully automated digital distribution channel for equine insurance.
“At Prism, we have always been about pushing the envelope and driving real change throughout the industry, whether it be managing stables more efficiently, welfare of the horse or improving the owner experience,” Prism’s Allan Bennetto said.
“This partnership with Furlong is another Prism first where we have invested in the industry to provide a more seamless approach to the world of equine insurance.”
The emergence of a new player in the equine insurance space comes as the sector undergoes consolidation through the recent merger of HQ Insurance and Silks Insurance under the new banner of Howdens.
Auction houses Inglis and New Zealand Bloodstock also offer clients equine insurance policies while Magic Millions is aligned with Howdens.
Equine insurance generally costs between three and five per cent of the horse’s insured value on an annual basis with Furlong to also offer cover to clients through its platform on Prism.
As well as his insurance businesses, Siemsen also has plenty to look forward to with Black Soil Bloodstock.
With 32 racehorses and seven broodmares on the books, including Niedorp and Miami Fleiss, the Furlong Insurance founder also has Skirt The Law on the comeback trail after her three-year-old season was hampered by foot problems.
On the insistence of her trainer Gollan, connections elected to race the four-year-old on for another season. She was runner-up in a Deagon barrier trial on Tuesday with the aim of having her peaking second-up on Magic Millions day in January on the Gold Coast, the scene of her biggest win.
“The contemplation was to retire her this year. We weren't sure if that hoof was going to develop enough,” Siemsen said.
“We wanted to look after her, but Tony’s got an incredible knack of looking after and rehabilitating horses. He's got a long track record of being able to do that.
“And he said, ‘just give us a season’. He said, ‘she's got plenty of racing left in her if I can get her back’.”
More immediately, Black Soil’s latest crop of two-year-olds are already off and running with La Bella Boom running third at Doomben on debut last Saturday and I Am Invincible colt Lockyer set to have his first start at Eagle Farm this weekend.
A colt - yes, a colt - Lockyer was an $800,000 purchase at the Gold Coast last January.
Again, it was Gollan at his convincing best that saw Siemsen and McAlpine agree to take a share in a syndicate headed by Rosemont Stud to race the brother to Group 2-winning stallion Strasbourg.
“It was actually Tony who walked past the table and said, ‘guess what, boys? You guys have bought a colt’. And then we said, ‘no, not if it's that last one you just bought for $800,000’,” Siemsen recalled.
And he goes, ‘no, no. I absolutely need you guys to take a share in this colt’. Anyway, that's how it tends to work in that relationship.
“We have a little bit of a say, but Tony's very influential, as you know.”
Gollan, the McAlpine family, bloodstock agent John Foote and others have been integral to Siemsen’s increasing involvement - and passion - for the industry.
“If you can get the formula right and be a good listener and learner, with some great people around you, you can make the hobby into a genuine hobby,” he said.
“But it's not without its level of risk-taking and ability to sort of have a little bit of luck. There's got to be a lot of luck involved.”
You could say Siemsen will have plenty to cheer about in the final furlong in the coming years.
