InsurePal is the first blockchain-based platform addressing the main issues of the insurance industry. Motivated by a “social proof” mechanism, the team behind the new service wants to build a more affordable insurance sector through rewarding behavioral patterns that stimulate individuals, groups and even society as a whole.
InsurePal is challenging the current insurance industry, which fails to deliver transparent pricing model and guarantee fraud protection. Using peer-to-peer endorsements, the platform will reduce premium costs and incentivize users, connecting them in a peer-to-peer insurance relationship.
The company believes blockchain is the best architecture for the project implementation. The technology is now rapidly developing, with its potential being recognized by leading investors. It is already forming new foundations for the economic system, given a large number of blockchain related projects appearing today.
Still, lack of trust remains to be the main problem impeding wider adoption of the technology. But for the blockchain to work, InsurePal says, individuals have to trust the system. According to the company, providing financial compensation in case of a breached contract will help to solve the problem and significantly expand blockchain usage. Meanwhile, social proof can reduce the insurance premiums to a level where insurance can be included in any smart contract transaction, offering a major public benefit.
“InsurePal will replace the insurers’ model as we know it today, and at the same time offer a completely new type of coverage for areas of life and business that began to emerge with the evolution of blockchain and the transactions being carried out on the distributed ledger ,“ InsurePal said in a white-paper.
In addition to the already known segments of insurance, such as motor, life, health, and property, the company wants to improve other areas, including blockchain business transactions.
Next month, on January 16, the InsurePal team will begin an ICO campaign, aiming to raise $18 million to finance its UK motor pilot in 2018. The token sale will be divided in three phases and will continue until February 5, 2018. A special 10% bonus will be offered during the first 96 hours of the crowdsale and for contributors investing more than 50 ETH.
To further drive the use of the blockchain technology, InsurePal has signed a letter of intent with the UK company Mattereum that will act as a decentralised court of arbitration for disputed smart contracts. The partnership will combine InsurePal’s social proof model of shared-risk insurance with Mattereum’s dispute resolution infrastructure, underpinning and accelerating the expansion of the user-managed crypto economy.
“Together, insurance and dispute resolution support claims about identity that can be relied upon because those claims can be insured and compensation in case of misidentification can be legally enforced,” InsurePal said.
Launched this year in London, Mattereum is the first Internet of Agreements infrastructure project for legally-enforceable smart contracts enabling the transfer of rights in physical and intellectual property and virtual assets.