Speculative Home/ Auto insurance in Bitcoin

[qwerty555]

If a Company offers you a 50% discount on comparative current rates IF you pay upfront for 1 yrs premium in Bitcoin ..would you change your policy provider?

House Insurance and car insurance are super massive markets and the cost is expensive.
A 50% discount is substantial an interesting.

The  historical trend of the bitcoin price is 1000% per year

Lets assume this does not last but maybe 100% will be the average over the next 5 yrs.

a few rules

Next years premium can be based on the bitcoin price at time of renewal.

Premiums for up to 5 future years may be paid in advance at todays rates

A  pool of 50% of revenue is created and made public for payments of claims. The value of this pool is to create credibility and confidence that you can pay claims.

. Now please find as many faults and benefits with this as possible so I can flesh out a final proposal



Investment model to be used LLoyds

http://www.lloyds.com/lloyds/about-us/what-is-lloyds

Unlike many other insurance brands, Lloyd's is not a company; it's a market where our members join together as syndicates to insure risk.

[sushi]

Most of our wallet is really limited at home and 50% seems very attractive.  You'll get lots of people switching over but, when it comes to sustainabilities, I believe it will be depend on how you payout the claims.

If customers feel they were stiffed out on car accident claims, home owner's insurance claims, they will automatically assumed, because of the cheap discount, the service was based on "what you paid & what you get"  then, you may lose the chunk from the initial signup, but you may still get more people who just want the basic and now they knows your insurance do payout some.

There is a big risk of assuming the values to continue to go up.  I hope this is the case but may be half & half?  Half cashed out FIAT Funds and other half in BTC hoping that the value will go up to pat the funds?

or come up with a little more convention side.  Write the policy entirely in BTC.  So there is no exchange rate confusion.  If you buy 2 BTC anual premium on the homeowner's insurance, in case of the total loss, you'll receive 500BTC and such. 

This way, it may not fall under the regular insurance regulation depends on where you are at because you are not paying out in money. 

[qwerty555]

Most of our wallet is really limited at home and 50% seems very attractive.  You'll get lots of people switching over but, when it comes to sustainabilities, I believe it will be depend on how you payout the claims.

If customers feel they were stiffed out on car accident claims, home owner's insurance claims, they will automatically assumed, because of the cheap discount, the service was based on "what you paid & what you get"  then, you may lose the chunk from the initial signup, but you may still get more people who just want the basic and now they knows your insurance do payout some.

There is a big risk of assuming the values to continue to go up.  I hope this is the case but may be half & half?  Half cashed out FIAT Funds and other half in BTC hoping that the value will go up to pat the funds?

or come up with a little more convention side.  Write the policy entirely in BTC.  So there is no exchange rate confusion.  If you buy 2 BTC anual premium on the homeowner's insurance, in case of the total loss, you'll receive 500BTC and such.  

This way, it may not fall under the regular insurance regulation depends on where you are at because you are not paying out in money.  

Thanks. I have also considered the 50/50 fiat bitcoin split and agree this may be a sensible practice to Hedge. Imagine if bitcoin dropped to zero .

The idea of bitcoin payout is certainly protecting the interest of the group but may be a negative point if the client is told by competitors ( for sure) that if the value drops they may not get the replacement cost of the loss. On balance I think payment will initially need to be in Fiat.

one of the aims is to be in such a great financial position due to the increase in the value of bitcoin received that the horror stories which abound do NOT happen with a bitcoin insurer

http://www.badfaithinsurance.org/bfindex.html


Numerous other big names in the industry were also implicated in the fraudulent practices scheme affecting upwards of 50 million policyholder victims. Such big names (following in bold) along with other companies (not in bold) affecting policies and policyholders victims included New York Life with an estimated 7.5 million, John Hancock Mutual Life affecting an estimated 6.8 million and Guardian Life an estimated 5.5 million. Even though these and over 40 other different life insurers have been sued in recent years for similar practices, investigations, lawsuits and proof that some of these types of fraud have been committed, are still ongoing within these companies and continue to be found. Numerous cases against Prudential, MetLife, New York Life, Allstate and John Hancock have surfaced since reaching settlement. Fraudulent sales practices such as these also exist too within fraternal organizations like The Aid Association For Lutherans have also been found. Among the partial list of companies found caught up in such improper and/or fraudulent practices is a veritable "Who's Who" of life insurance. They include: The Aid Association For Lutherans, Allmerica Financial Services Inc. (fmrly State Mutual Life Assur.), American Express/IDS Life, American Family Life Insurance, American General Life & Accident Insurance Co., American Income Life, American United Life Insurance, Berkshire Mutual Life Insurance Co., CIGNA (Connecticut General) Life, Crown Life, Equitable Life (now AXA Equitable Life), Franklin Life Insurance Co., General American Life, Guardian Life Insurance Co., Great West Life, Hartford Life Insurance Co., Jefferson-Pilot Life Insurance Co., John Hancock Mutual Life Insurance Co., Life Insurance Company of Virginia, LifeUSA, Manufacturers Life Insurance Co., Mass (Massachusetts) Mutual Life Insurance Co., Metropolitan Life (MetLife) Insurance Co., National Life (VT), New York Mutual (MONY) Life Insurance Co. of New York, Nationwide, New England Life Insurance Co., New York Life, Northwestern Mutual Life, Pacific Life, Phoenix Home Life Mutual Insurance Co., Principal Mutual Life Insurance Co., Prudential Insurance Co. of America, State Farm Life Insurance Co., SunAmerica Inc., Sun Life Assurance Co. of Canada US, Transamerica Occidental Life Insurance Co.


https://www.google.com.ph/search?q=claims++adjustors+bad+practices&ie=utf-8&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&gws_rd=cr&ei=P2KJUvXyJ4iWkgXNo4G4BQ

The primary objective is fairness , providing a good deal to the public , whilst the MAXIMIZING of profit by any and all means is NOT something to be practiced  . A  comfortable rate of return whilst minimizing risk is the objective.

[sushi]

I think you have a great idea for sure!

Now BitPay is getting more common in the USA Market, soon, Bitcoin will be like Paypal.  People will feel more confortale to use as a medium of payment.

Seems now is the best time to take that advantage instead of being the follower, be the leader in the market!!!

Fairness do prevail

[qwerty555]

Next


what do we offer insurance on initially and where and to whom?

1 Basic / mandatory in California ( 37 million car market)........ damn that's a lot of bitcoins even with only 5% of the market target:)

http://www.carinsurancecompanies.com/california-car-insurance/

    $15,000 liability coverage per person for injury
    $30,000 liability coverage per accident for injury
    and $5,000 for property damage liability

This market is the lower/lower middle income individual ( majority of the population) that wants to comply with minimum law standards as opposed to those who just dont get any insurance and risk penalties if caught.

strangely MANY MANY years ago I was in the latter camp and guess what?  I was a more CAREFUL driver because I did not want to get caught . Even when I got the minimum legal insurance required I was still careful as

- I could not afford to do without (while awaiting claim payment) or replace a car.
- The "no claims bonus discount " was substantial  

standard age and previous claim history restrictions /premium adjustments to apply.

2 Home insurance

http://www.iii.org/facts_statistics/homeowners-and-renters-insurance.html

 lower premium offered for Jewelry (often a racket) exclusion clause on contents. This will be ok for the majority of the market who just want to insure the building  against damage and electronics against theft.(and may not have much jewelry to worry about)

standard coverage for building damage.