Initially, several aspects of the Policy issuance will have human interaction but as a knowledge base of processes gets created we have a long-term vision to automate the entire platform using machine learning functionalities in the long run of the platform.
In the traditional insurance models, product/ pricing is managed by the insurer. In our P2P model, initially, the Governance team (PolkaCover) would be working with insurance underwriters (pricing experts) when we build out our initial products.
Once there is enough experience & data of claims. We would hand over the pricing function to the community. This is to ensure that the community gains the needed experience from experts to understand how risk assessment is done. Once the knowledge transfer is done, we would hand over all aspects of P2P insurance management to the community to make it work similar to a DAO.
Our products are only aimed for the retail users and being built in the same fashion.
We believe retail crypto user do not have any real insurance options and are at high risk & mercy of exchanges in case something goes wrong and we want to cater to mass market users. On every policy sold, a small portion of it goes towards managing the operations costs & future growth of the platform.
The revenue models differ depending on our insurance platforms:
1. Traditional insurance marketplace — We receive commissions on every policy sale from our insurance providers
2. P2P insurance marketplace — We receive a percentage of the premium to manage the operational cost of the risk pool/governance/pricing support/R&D
With this model, we are not dependent on “using” the tokens in our treasury but business itself takes cares of the operations & expansion of the platform
We have this planned in our P2P insurance platform to reinsure a part of the risk using a reinsurance company (thus reducing the risk of users in our risk pool) and there is work that is happening around this and will share more information once we have a concrete partner supporting us for our products.