The use of blockchain technology in building various solutions for the insurance industry makes it more reliable and transparent for customers.
We have selected for you 5 of the most interesting and active projects using blockchain technology in the insurance industry:
- Etherisc;
- Medishares;
- PAL Network;
- Teambrella;
- VouchForMe.
Etherisc
The startup Etherisc has developed a decentralized insurance platform based on the Ethereum blockchain. The company independently develops products on this platform, and also allows other organizations to use it to create and distribute their own applications, providing them with a common infrastructure, product templates and insurance license as a service.
The company was the first to develop a product for insurance benefits for flight delays. The system allows passengers to purchase an insurance policy using cryptocurrencies or traditional money, and payouts occur automatically when an insured event occurs: flight delays.
The platform is based on open-source smart contracts, which makes the system transparent and ensures a high level of trust. The decentralized nature of the system avoids conflicts of interest. The startup is also working on solutions for hurricane insurance, crop insurance, cryptocurrency wallet insurance and others.
Medishares
Medishares is a decentralized marketplace for mutual insurance for users in various fields of activity. This open-source platform is based on the Ethereum blockchain and uses smart contracts to bring together users who need insurance services with those who provide them.
The MediShares insurance model assumes that by joining the system, insurers contribute a certain amount, providing reserves for insurance claims by purchasing MDS tokens. To incentivize insurers to keep reserves in the system, they are paid a reward in MDS platform tokens. Users wishing to purchase insurance are given access to a smart contract template where they can pay for the insurance at an acceptable amount.
The platform is built on the DAO principle and does not require personal data from both parties, which increases the reliability and privacy of the system. Due to the absence of intermediaries and decentralization of the platform, the insurance commission charged is minimal.
Decentralized applications will be developed for the platform for health insurance, insurance when participating in extreme sports, expensive car insurance and others. The MDS token is traded on 9 exchanges including Huobi Global, Gate.io, Dcoin and others. The full launch of the platform is scheduled for 2019.
PAL Network
PAL Network is a startup from Singapore that is focused on blockchain-based insurance using artificial intelligence and machine learning.
The platform was created to provide insurance coverage to people outside the banking system, bridging the gap between consumers in developing countries and insurance providers. PAL Network provides a new level of accessibility and reduces the limitations associated with the traditional insurance industry.
Teambrella
The startup Teambrella provides users with P2P insurance services. Users of the service join teams and provide insurance to each other.
When an insurance claim occurs, reimbursement decisions are made within the team through discussion and voting, ensuring a transparent process. The openness of the process ensures fair judgments are made and strengthens social relationships. Users do not have to participate in voting all the time, she can appoint a proxy to vote instead. Voting participants are compensated in platform tokens, with rewards varying depending on the user’s trust rating.
Team members are paid from cryptocurrency wallets located on the Bitcoin and Ethereum blockchain, which they control themselves. Private keys to them are stored only inside the client’s individual system.
The Teambrella platform as well as iOS and Android apps are already available to users.
VouchForMe
VouchForMe, formerly known as InsurePal, is a blockchain platform with a unique concept.
The app represents the world first decentralized social insurance based on community endorsement. A similar mechanism is already being used in other areas, such as in lending, where the borrower gets some benefits if they have a guarantor. The main principle of the platform is to provide a discount to insurance company customers if they have guarantors who provide a financial guarantee.
A platform user can ask his friend or acquaintance to become his guarantor on the platform to earn a rather large discount on the insurance premium. The guarantor provides a financial guarantee that will only be withdrawn from them if the applicant violates the terms of the insurance contract. The guarantors are motivated by the instant payout of the platform tokens, which they will be able to keep as investments or sell on the exchange. The platform guarantees that the insured client will receive final compensation if the other party has breached the mutual agreement.
The VouchForMe model is a classic combination of traditional insurance and P2P endorsement on blockchain, backed by social proof. According to the founders, this approach creates a positive incentive for the policyholder to become more responsible. VouchForMe solution is patented. The first web version of the platform is already available to users.
Not only startups are trying to actively implement blockchain in the insurance industry, but also large companies are teaming up to explore the possibilities of this technology in detail. For example, the B3i consortium has brought together insurance giants such as Allianz, Liberty Mutual, Munich Re, Swiss Re, Zurich Insurance Group and others. IBM and Guardtime are actively implementing their own blockchain platform for the insurance industry. We see that blockchain technology can really modernize such a conservative industry as insurance and bring it to a new level of development.
