InsurePal is a blockchain insurance company that works on what is called social proof, a concept introduced in depth in a prior article. It challenges current practices in the insurance industry which fail to provide a transparent and fair pricing model. Their platform connects responsible individuals in a peer-to-peer insurance relationship by introducing social proof endorsements. If a friend endorses you, they stake a sum of their choosing to be transacted in a claim should you have one. If not, by the end of the year the endorser walks away with a bonus along with the sum they placed. More details on how social proof works is reviewable in their whitepaper, as well.
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Social proof can bring the premiums down to a level where insurance can be included in any blockchain based smart contract transaction, which will be a major public benefit. That is why in addition to the existing insurance markets, they will also engage with new markets emerging alongside blockchain. This type of insurance will also use social proof to keep peers and businesses accountable. If one party breaks protocol on a transaction, then their trust rating goes down and their endorsers are penalized for their wrongdoing. The implementation of social proof for transactions keeps businesses and peers accountable with crypto assets and allows for more businesses to transact on the blockchain, and it creates a reputable marketplace for peers to transact.
As part of the effort by the first decentralized blockchain based social proof insurance platform to reward people who make responsible decisions, InsurePal announces their collaboration with Mattereum, the platform for making possible the legal transfer of property through the use of a smart contract. This synergies two of the most novel innovation on the blockchain: InsurePal`s social proof model of shared-risk insurance and Mattereum`s dispute resolution infrastructure.
InsurePal is also an award-winning startup which has twice taken the first prize in the esteemed d10e pitch awards. InsurePal’s pitch was featured in both Bucharest and Ljubljana delivering a convincing pitch to judges at the forefront of Fintech and Blockchain innovation. Their project has attracted a lot of investors, gained extremely positive attention from industry experts and their community, which was confirmed recently when the team sold-out all 70% of tokens available in their presale.