P2P Insurance in the Coming Year
What P2P insurance projects will deliver on by early 2020
TandaPay is a team effort lead by tarski.tech with participation by nearly 20 individuals most of whom are college students. We intend to have a finished prototype by the end of 2019. Our goal is to build a consumer friendly app for a mainstream audience that can leverage crypto. The ability to reach mainstream consumers is a very new development in the cryptocurrency space. What was impossible to create in 2017 is now finally achievable in 2019. This is because the tools for developers to build consumer friendly apps have only now started to emerge. Innovations such as stablecoins, services such as Wyre, mobile cryptocurrency wallets, and ERC-721 token standards are an indication that the ecosystem is entering into a new stage of maturity.
It is a requirement that developers abstract away the technical details of cryptocurrency. Our aim should be to create an app that never forces consumers to understand how the technology works. Today more than 87% of adults in the US know how to drive while less than 30% know how to change the oil in their vehicle. Just as drivers of automobiles cannot be inconvenienced to learn how combustion engines work to get the benefits of transportation; we should not expect our users to understand how cryptocurrency works to get the benefits of financial innovation. Our users simply want the app or service to work and provide them with a useful benefit.
To this end the team as been asked to answer a few questions to gauge how they feel about the potential for innovation in the space of peer to peer insurance. Rather than answer these myself I’ve decided to let others provide their input first and afterward I will weigh in.
How feasible is it to use existing technologies to provide peer to peer insurance coverage?
Can existing technology be leveraged to provide insurance coverage without a centralized provider?
In the next year will groups be able to:
- Use a decentralized protocols to form insurance cooperatives?
- Coordinate to provide each other coverage using blockchain technology?
In the next year will decentralized protocols become sufficiently mature to:
- Reliably pay out claims valued at $500?
- Enable blockchain technology to secure insurance premiums against fraud, theft or misappropriation?
In the next year will mobile phones enable the following actions:
- Conversions of cash to cryptocurrency in less than 1hr?
- Conversions of cryptocurrency to cash in less than 1hr?
- Allowing policyholders to hold their premiums in cryptocurrency?
- Policyholders paying premiums to smart contracts with cryptocurrency?
- Claimants receiving claim awards from smart contracts with cryptocurrency.
- Coordinating the claim submission and approval process?
In the next year will groups be able to underwrite and manage a group policy by deciding:
- What coverage to provide?
- Who should be able to participate?
- Routine administrative tasks?
In the next year will groups be able to approve claims by reaching consensus as to:
- Which participants should be refused coverage?
- Which claims are valid?
- Which claims are invalid?
In the next year will the technology provide protections against:
- Policyholders submitting fraudulent claims?
- Authorities misappropriating premiums?
- Authorities from denying valid claims?
- Premiums being lost or stolen?