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UnoRe – Missing Piece for Insurance on Blockchain

UTC by Julia Sakovich · 4 min read
UnoRe – Missing Piece for Insurance on Blockchain
Photo: UnoRe / Twitter

UnoRe aims to be the missing piece that unlocks the enormous potential of decentralization within the reinsurance industry. 

According to aggregator DeFi Pulse, the DeFi space went from around $600 million in total locked value to over $57 billion in just over a year. The explosive growth came from the development of collateralized loan platforms, liquidity mining programs, and decentralized exchanges that added incredible value for token holders. They’ve also added value for the blockchain and cryptocurrency space as a whole. These applications brought tried and true financial products to a digital environment where their potential for experimentation and composability is unlimited.

Nonetheless, a critical component of finance has still not been translated effectively into a digital counterpart. Insurance remains one of the trickiest and most underdeveloped aspects of the DeFi sector. A host of services offer similar products to cover hack risks on exchanges or wallets, but few are able to take on the larger and more profitable risks that are present.

Insurer’s Insurance

This is because DeFi still doesn’t have adequate reinsurance. Known as “insurer’s insurance,” these businesses are an essential part of the industry. They take care of insuring the “black swan” events that are so acute, they could leave regular insurers insolvent. 

Such a service for blockchain and cryptocurrency initiatives would allow current DeFi insurance solutions to take on larger clients. It would also foster the development of innovative insurance products that would not be possible for slow and bureaucratic brick-and-mortar insurers to provide. Some of these could range from AI-based pay-as-you-go crypto insurance to on-demand auto and health insurance.

UnoRe

UnoRe is the world’s first decentralized reinsurance platform dedicated to addressing this need. As a blockchain-native risk platform, it allows its community of investors to fund, trade, and build new insurance solutions that serve the broader blockchain and cryptocurrency space.

Users can participate in the UnoRe platform in three major ways: 

  • UnoRe for Investors 

First, they’re allowed to invest in different risk profiles by staking $DAI tokens. This awards them with returns in both $DAI and the platform’s native $UNO token.

  • UnoRe for Traders 

Traders are also catered to with the ability to trade risk under a model similar to that of an exchange. They are provided with key information, such as loss ratios, that help in their decision-making.

  • UnoRe for Innovators 

Finally, UnoRe allows its users to create their own insurance products. The user can propose novel protocols for creative solutions that would be unthinkable for traditional insurers due to outdated practices that would be unthinkable for traditional insurers due to outdated practices, inefficient processes, and the lack of secondary protection that reinsurance provides.

All these operations can take place as $UNO denominated transactions – the $UNO is an integral part of the platform’s services, enabling purchases, discounts, claims payments, risk pool sharing, underwriting, and a set of key rewards systems that further incentivize user engagement with the token.

UnoRe is led by Insurtech and blockchain professionals Jaskanwar Singh and Sujith Sizon. The team has built an EVM-compatible platform, able to operate on the Ethereum blockchain. The platform is set to be ported to the Polkadot network as well, as a way to bypass the scalability issues that currently affect the DeFi space. Users can also expect to have a seamless insurance investing, trading, and creation experience through both a web and mobile version of the dApp. 

More information can be found on the UnoRe white paper.

Potential of Reinsurance

The market for this solution is growing by the day as larger investors and institutions continue to see the possibilities of blockchain and cryptocurrency technology but still have qualms about the market’s inherently risky nature. As one of the safest asset classes in the world, proper insurance on the blockchain could serve to draw in a greater pool of conservative investors to the space.

Furthermore, the availability of properly reinsured insurance services on the blockchain would open new doors for the whole DeFi ecosystem. It could catalyze the advancement of thousands of innovative projects for whom insurance has historically been a roadblock to their development, many of which could produce returns similar to the loans, rewards, and exchange applications that have already created billions in total value. UnoRe aims to be the missing piece that unlocks the enormous potential of decentralization within the reinsurance industry. 

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Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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