The firm is the frontier in the development of decentralized insurance, a move that looks to transform the norm in this industry. Consequently, insurance sales will be more efficient, affordable and more transparent. Also, this approach promises to give universal and unconditional access to all parties interested in reinsurance.
Reasons For Decentralization Of Insurance
For a long time, this multi-trillion industry has been at the behest of large syndicates and held on a leash by stringent and obsolete rules. As a result, the sector has become inefficient, which translates into an expensive and frustrating experience for the consumer. Customers in need end up being on a goose chase, as insurers become frugal in a bid to save that little profit.
By revolutionizing the sector, Etherisc is looking to eliminate these shortcomings. They vouch for an all-inclusive approach, where everyone, regardless of their financial muscle, come together to improve the industry. The company aims to realize this vision through the integration of blockchain technology.
With the use of blockchain, Etherisc can transform the insurance sector from its current form, to a peer-to-peer risk platform. This gives power back to the grassroots, with new clients encouraged to create their own insurance risk pools within the platform. Etherisc is an accredited insurer, licensed to carry out services in the budding blockchain economy.
How Blockchain Can Transform The Insurance Sector
Clearly, the traditional insurance sector is marred with a fair share of shortcomings. In addition to providing the basics of an insurance platform, there is baggage such as high costs. Blockchain alleviates these costs, saving money for both the provider and the consumer. Some of the problems which blockchain eliminates include;
- Managerial costs
- Conflicting interests between consumers and the insurers.
- Distorted information between clients and firms.
- Access risk pools.
Prerequisites For A Decentralized Insurance System
In the implementation of an alternative insurance platform, there are several requirements that have to be in place. These include;
- A standardized protocol that decomposes the value chain to allow for an all-inclusive approach.
- A decentralized insurance protocol that enforces an open market mechanism, reducing coordination costs.
- Stable financial backing to fund the project entirely.
- A means of determining and equitably distributing all expenses among the clientele.
Once the protocols are formulated, the next step is the creation of tokens to enable its implementation. Different tokens are designed for varying scenarios. Protocol tokens are used for transaction costs, while risk pool tokens cover capital costs.
Etherisc Token Sale
The plans for the upcoming crowdsale are in top gear, and the company will keep eagerly waiting investors up to speed with regular updates.
Distribution Of Funds
The proceeds from the token sale will be wired to the Swiss DI Foundation. The funds will be donation to the foundation’s course, which is in line with those Etherisc. The organization intends to use the money in;
- Funding the enhancement of decentralized insurance protocol and its immediate community.
- Creation of commercial insurers and providing capital for them, either entirely or with assistance from other players within the insurance sector.