Over years, insurance industry has transformed from a communitydriven risk sharing model into an adversarial model where large institutions dominate the industry.
The return on investments of such institutions often goes into managing the increasing frictional costs of running a centralized business or distributing dividends to the stakeholders – seldom does the return on investments reach the policy holders.
Centralization, in any business model, comes with its own set of challenges like misaligned interests among stakeholders and lack of transparency. In the insurance industry, lack of cooperation within intermediaries results in significant frictional costs whereby about 35% of premium cost is often apportioned to operational expenses
With the advent of blockchain, the new global infrastructure that facilitates disintermediation and decentralisation, there’s an opportunity to build true peer to peer risk sharing economies at scale, such that people are able to trust other people without knowing each other. P2P Insurance, powered by blockchain, allows a community to administer policies, buy insurance, assess claims, underwrite risk all among the members of a community.
“GovBlocks affords us a modular approach to governance that can be easily changed if necessary. We can tweak voting weights, rewards, quorum levels, virtually all components of the governance process... GovBlocks actually enables us to deliver on our goal of building a living breathing organism that can be fully controlled by its members”
Founder, Nexus Mutual
Nexus Mutual is building a decentralised alternative to Insurance which will entrust upon the members of Nexus Mutual a crucial role in governing the operations of the mutual.
“I have been watching the development of this (GovBlocks) solution with great interest. Ish and his team are proving themselves to be both innovative and determined - a terrific combination! I wish them more on-going successes.”
ICT Advisor to the Bank of
Papua New Guinea
GovBlocks allows for more effective interactions between all partner intermediaries who become network stakeholders
GovBlock provides an enhanced and dynamic governance layer which is capable of managing a varied and constantly growing member structure
Deploy a model that best suits your mutual community for defining members roles, vote count mechanism, etc. for each insurance process
Configuring aligned incentives drive cooperation within the community and allows for increased interaction within members of the network
Schedule a free 30-min call with our team of blockchain aficionados! Trust me, you won’t be disappointed :)