Phase 3 - P2P Insurance Platform

Insurance DAO - a new concept

A decentralized autonomous organization (DAO) which decides the pricing, risks, claims assessment and rewards of the products. As per the standard insurance industry practice, consumers will be rewarded with the claims-free bonus when no insurance claims are reported during the policy period.

Currently P2P insurance options are non-existent within the region mainly due to the in ability of traditional insurance providers to be able to manage the operational setup and risk scope behind such a model due to a lack of information in the local market.

We intend to be able to supply that behavior information (which will be gained over time) needed and provide the operational support needed to run such programs and be the main partner for insurance providers to work with for P2P insurance.

How does P2P Insurance work?

The insurance model is similar to the broker model except that the peer-to-peer provider is the actual insurance company. If the pool is insufficient to pay for the claims of its members, the insurance carrier pays the excess from its retained premiums and reinsurance. Conversely, if the pool is "profitable" (i.e. has few claims), the "excess" is given back to the pool or to a cause the pool members care about.

P2P insurance is risk sharing network where a group of associated or like-minded individuals pool their premiums together to insure against a risk. Peer-to-Peer Insurance mitigates the conflict that inherently arises between a traditional insurer and a policyholder when an insurer keeps the premiums that it doesn’t pay out in claims.

We would be creating the platform for individuals to create their P2P pools or provide them access to existing pools which they’re eligible for. We would be also providing the claims management assistance for claims payouts. The Insurance purchase and Claims payout would be exclusively in EMI coins.

Targeting under-served markets

The intention of P2P insurance is to significantly lower the cost of getting insurance coverage and would serve as the perfect model for adoption in underdeveloped or developing countries.

We aim to harness the advancements in the field of blockchain technology to bridge the gap between consumers in developing countries and insurance providers by providing a new level of accessibility to the insurance ecosystem.

Polkacover Platform plans to achieve this by leveraging a host of firm partnerships in these emerging markets to serve the millions currently without access to protection due to complex buying processes and high insurance premiums.

Polkacover’s is looking to introduce P2P insurance solution & platform initially aimed for Africa & Middle Eastern markets and would later look towards moving the P2P model globally. We are initially targeting to enter within the African Markets who do not have insurance protection due to the high premiums as compared to their income.