Bitcoins to revolutionize insurances

[Kakmakr]

You want to solve the transparency issues with the insurance process, and not the actual financials, right? The only problem is, public transactions with attached private documents will open up other problems, for example, security breaches on house plans posted in public or values of items or cars being displayed in public. If I was a thief, and I followed the public Blockchain on the process of the new claim, I will know when to hit that target again. We have had break-in, where the thief just waited for the insurance to pay out, and then they came back for the new claimed items. Some information should not be public knowledge.

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[primeGPU]

It could be semi-transparent, i.e. visible to members only.
And there are many types of insurance where privacy is not a concern. For example, pet insurance.
For some types of insurance, such as car damage, most of the info is in public databases anyway.

[rienelber]

" how anonymity and scam-resistance could be provided as I strongly believe this could be a very fair insurance. Typical fraud with fire insurances would be to burn my house after insuring it with several insurances. Our bitcoin insurance would have the problem that I could even run 10 contracts and resolve all ten in parallel as long as there is no central authority matching incidences and there are enough members that an overlap of judges won't occur "

IMHO that summs up why it's not such a good ideia...

[avikz]

Insurance is legal and regulated in a very strict manner. Bitcoin is neither legal (except few countries) nor regulated. So I think it is not possible to insure bitcoin ever. Bitcoin is more like an equity share with volatile price. I don't think any insurance company can insure equity shares because of the market dynamics. the similar way, bitcoin can't be insured.

[Slark]

Bitcoin is good for payment method but not as base for whole foundation of insurance system. Bitcoin and insurance are simply not good paired together.
For insurance to work you need full information about your clients, their addresses history of previous accidents and so on.
What is the point using bitcoin as payment method for service if you will still have to provide information of that nature?

[primeGPU]

For insurance to work you need full information about your clients, their addresses history of previous accidents and so on.
What is the point using bitcoin as payment method for service if you will still have to provide information of that nature?

The amount of related paperwork makes regular insurance ineffective for small claims.
A $500 standard deductible may be a pocket money for some, but there people who wouldn't mind to reduce even such risks.
So a bitcoin-based insurance service fits this niche very well.

[~Bitcoin~]

It could be semi-transparent, i.e. visible to members only.
And there are many types of insurance where privacy is not a concern. For example, pet insurance.
For some types of insurance, such as car damage, most of the info is in public databases anyway.

i think there is no need of anonomity in insurance field also also decentralzation can't make enable to invest others money in something. I don't get idea about how this can work. P2P insurance

[primeGPU]

i think there is no need of anonomity in insurance field

I don't think it's either black or white. For some type of insurance you would prefer anonymity. For some other it's not important.
Also, different people value their privacy differently.

also also decentralzation can't make enable to invest others money in something. I don't get idea about how this can work. P2P insurance

It's definitely possible.
Check out our whitepaper: https://teambrella.com/WhitePaper.pdf
(there' also a tl;dr on the site)

[Yakamoto]

It could be semi-transparent, i.e. visible to members only.
And there are many types of insurance where privacy is not a concern. For example, pet insurance.
For some types of insurance, such as car damage, most of the info is in public databases anyway.

i think there is no need of anonomity in insurance field also also decentralzation can't make enable to invest others money in something. I don't get idea about how this can work. P2P insurance

I think P2P insurance would be easily abused, though. There would be very little way to enforce the actual payment of the covered costs, and someone could basically get scammed out of the money they had paid for the coverage.

I guess if there was a reputation system or something, then a P2P system would be more viable.

[primeGPU]

I think P2P insurance would be easily abused, though. There would be very little way to enforce the actual payment of the covered costs, and someone could basically get scammed out of the money they had paid for the coverage.

We use 1 + N out of M multisigs to fight exactly this scenario. We call such multisigs "distributed wallets".
Each teammate sends his coins to his personal distributed wallet. He has a veto power (the "1" part of the "1 + N/M") but is allowed to withdraw funds only if all outstanding premiums can be paid out.

[primeGPU]

Check out Teambrella's brand new FAQ page:
https://teambrella.com/faq

[primeGPU]

We launched the Demo version of Teambrella:
https://teambrella.com

The coverage in the demo is for car collision deductibles. We're adding another demo team that would cover veterinary bills really soon.
The demo is a fully-functional one and employs a sandbox concept. This means that you can do whatever you want with it -- it doesn't interact with other real people in any way.

As a thank you to the community that's been helping us tremendously, we're giving away a 50% lifetime discount to our future fees. To get it, you'd need to subscribe to our mailing list on the site (https://teambrella.com) till September 30. Make sure to use the same email as in your Facebook account, so we would be able to apply the discount.

[bitbunnny]

Original idea but I doubt that insurance companies would get interested for this. Because of Bitcoin volatility and lack of regulations this is stil too risky for them. Have you maybe thought to start your own business with Bitcoin insurance, as alternative, for those who are brave?

[primeGPU]

Original idea but I doubt that insurance companies would get interested for this. Because of Bitcoin volatility and lack of regulations this is stil too risky for them. Have you maybe thought to start your own business with Bitcoin insurance, as alternative, for those who are brave?

If you're referring to Teambrella, we don't rely on the interest of insurance companies. In fact, we do provide an alternative.

[markisanon2434]

Your idea sounds interesting but this problem which you yourself has said in the last paragraph, I am quoting you...

Typical fraud with fire insurances would be to burn my house after insuring it with several insurances. Our bitcoin insurance would have the problem that I could even run 10 contracts and resolve all ten in parallel as long as there is no central authority matching incidences and there are enough members that an overlap of judges won't occur but I'm sure either other insurances that are easier to identify could work that way or some of you has a good idea to tackle this concern.

Will cause all sort of problems and can bring an end to the project. Real life insurance should be having a solution for sure. I think they what they so it, even if you insure your house which has a total value of let say a 1 million USD, then if you take out 10 insurance policy, and your house get burnt and after the investigation they found that it's an accident and the insurance agreement covers it then, all the 10 insurance companies will pay you 100,000 USD and total you will get 1 million. You won't be allowed to make good or profit out of your loss

You will have to implement something like this.

[primeGPU]

You will have to implement something like this.

The solution is transparency. If payouts are visible to outsiders it's impossible to get away with such kind of fraud.

[davis196]

Insurrance normally need a lot of legal scaffolding to prevent fraud. I can't imagine it working in a lot of real life claims.

If you are talking about contractual insurrances where it's easier to determin who has had a loss and culpa, it might work.

I never though about using bitcoin in the insurance business.

This might be a good idea,if there was a way to prevent insurance fraud.

Contractual insurances might work.

[TraderETH]

It is nice idea and innovation  insurrance using bitcoin if it be successful will becoming bitcoin more popular, although will need much time because the client must understand about bitcoin. and there are not business is like this before.

[primeGPU]

and there are not business is like this before.

That's a valid point. But everything's changing so fast these days, so people start getting used to changes.

[Youresioure]

I don't think that Bitcoins will revolutionize the insurances market. Bitcoin's future price's too unpredictable. That's why I think that revolution won't happen thanks to Bitcoin. In addition, I don't see why people'd choose an alternative currency when insurances market's its popular, working traditions already.