INSURANCE Insurance

Fraud Prevention

Insurance companies can use blockchain technology to detect and prevent fraudulent claims more effectively. The immutable nature of blockchain records makes it harder for bad actors to manipulate information or submit false claims.

Streamlined Claims Processing

Smart contracts on the blockchain can automate many steps in the claims process. This speeds up claim settlements, reduces paperwork, and improves the overall customer experience when filing and tracking claims.

Data Management

Blockchain provides a secure and transparent way for insurers to store and share customer data, policy information, and claims history. This improves data accuracy and accessibility across the insurance ecosystem.

Peer-to-Peer Insurance

Blockchain enables new peer-to-peer insurance models where groups of individuals can pool resources and provide coverage to each other without a traditional insurance company as an intermediary.

Risk Assessment

Insurers can leverage blockchain to access and analyze more comprehensive data for assessing risks and determining premiums. This allows for more accurate and personalized pricing of insurance policies.

Reinsurance

Blockchain can streamline reinsurance processes by providing a single source of truth for all parties involved. This reduces disputes and speeds up settlements between insurers and reinsurers.

Product Innovation

The technology enables the creation of new insurance products, such as parametric insurance policies that automatically pay out based on predefined conditions recorded on the blockchain.

Here are some key pros and cons of Insurance:

Advantages

Insurance can provide protection against potential losses and risks in the crypto world. It may cover things like hacks, theft, or system failures. This can give investors more peace of mind. Insurance can also help crypto businesses comply with regulations in some places. Having insurance options available may increase trust in the overall crypto industry.

Disadvantages

Insurance policies for crypto are often limited in what they cover. The premiums can be expensive since crypto is seen as high-risk. There isn't much history or data for insurers to base rates on. Cybersecurity risks make it challenging for insurers to offer comprehensive coverage. The lack of regulation in crypto also makes it difficult for insurance companies to assess and price the risks involved.

Considerations

Whether Insurance makes sense depends on your specific situation and risk tolerance. Large exchanges or businesses may benefit more than individual investors. As the crypto industry matures, more Insurance options may become available. But for now, coverage tends to be partial and costly.

Key Founders

The main founders of Insurance include:

• Matt Sitzmann: Co-founder and board chairman. He came up with the initial idea for crypto-based insurance products.

• Peter Eberle: Co-founder, president and chief investment officer. Helped make Sitzmann's vision a reality.

• Dan Hoover: Co-founder, chief operating officer and chief compliance officer. Also instrumental in launching the company's products.

Company Background

Insurance was founded in 2018 with the goal of bringing together the crypto and insurance industries. The founders aimed to create innovative insurance solutions tailored for digital assets and blockchain technology.

Product Development

The company's first major product was an insurance dedicated fund (IDF) for privately placed variable life insurance and annuities. This fund is composed of an index tracking the top 5 cryptocurrencies by market cap, rebalanced monthly.

Prominent Investors

Insurance has attracted significant funding from notable investors in the tech and venture capital world. Sam Altman, CEO of OpenAI, and Lachy Groom, former head of Stripe issuing, co-led the first seed funding round. Gradient Ventures, a Google venture fund, led the second round. Other investors include MS&AD Ventures.

Total Funding

Insurance has raised approximately $19 million across two seed funding rounds. This substantial financial backing puts the company in a strong position to develop its innovative Bitcoin-denominated life insurance product.

Use of Funds

The funding will allow Insurance to secure licensing and regulation from the Bermuda Monetary Authority, build out its initial team, and launch its first product offering Bitcoin-denominated whole life insurance. The company aims to combine Bitcoin with artificial intelligence to create a modern, full-stack life insurance solution.