Large insurance companies make their profit by capitalizing on drivers that have good behavior. If a driver gets out of line, their insurance policy pays a set amount after the deductible and their price of insurance goes up. This penalizes bad drivers, yet insurers still make billions off the backs of good drivers in the process. And despite its growth this $7 trillion industry shows no real effort to innovate.
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InsurePal utilizes the blockchain`s decentralized ledger to incentivize good behavior by using social proof. Social proof allows for another to vouch for you by staking a sum of their choice. Endorsers are incentivized by a bonus that releases to them instantly. If no claims are made by the insured in a year, then the endorser keeps the bonus. If there is a claim, the endorser is penalized the amount of the insured’s savings, the bonus, and a penalty fee. The trust rating system will highlight the good drivers and endorsers that are credible.
InsurePal’s social proof offers an affordable means of car, health, and life insurance. They will also include insurance for transactions on the blockchain. Of course savings depends on what the insured pays on their current plan, but the potential to save is great with social proof, and InsurePal’s social proof also makes it possible to have multiple endorsers to mitigate their loss.
InsurePal’s technology is in the patent process for the U.S. with worldwide patent recognition being applied for as well. Their proof of concept, posted on their Github, details the patented technology. Key dates for implementation of InsurePal will be Q3 and Q4 of 2018. Then, InsurePal expects to receive a MGA licence from the UK market. Also in those quarters, they plan to begin obtaining a European license. More advancements will include the testing of the platform in the UK and creation of health and life insurances. InsurePal plans to expand to a number of different insurances as the platform matures with an emphasis on affordability in that market space. Insurepal will also expand into other services on the blockchain as the space develops.
InsurePal is also innovating by participating in the first case of assurance of transactions on the blockchain. How an insured transaction works is that party A and B decide that a beneficial trading relationship may occur over the blockchain. However they are not sure how to trust each other in transacting. With InsurePal, parties sign an arbitrage smart contract that details the time span for dispute and penalty for breaking the terms of the contract. If a party breaks the contract they will have up to so long to remedy the situation under the dispute. If the party does not improve their position in terms of the contract then the breaching party will pay the penalty. This insurance of transactions system is also nuanced by the trust rating system. The more approved transactions by a party also creates a trust score within the InsurePal ecosystem. The more trust a user has, the more transactions they are likely to receive.
InsurePal is expected to operate as a dAPP on the Ethereum network on the end for individual customers. On the B2B end, InsurePal will be introduced as a service. InsurePal (IPL) will be the premier token used for the platform valued at $.10 a token with a hard cap of $18 million. For more information, InsurePal is now active on the social media platforms Facebook, Twitter, and Telegram. They are anticipating their ICO crowdsale January, 16, 2018.