InsurePal, found online at Insurepal.io, aims to provide distributed social proof insurance. Find out what that means today in our review.
What Is InsurePal?
InsurePal is a peer-to-peer insurance platform based on social proof endorsements. The platform is built on the blockchain and aims to serve as a replacement for insurance as we know it.
InsurePal will offer a completely new type of insurance coverage for your life and business. This insurance type is only possible with blockchain technology.
The platform revolves around the use of IPL tokens, which will be sold through a crowdsale starting on January 16, 2018.
How Does InsurePal Work?
InsurePal is a platform where you can get peer-to-peer insurance. Instead of working with a centralized insurance company to get overpriced insurance, you can get insurance from a peer and have that insurance secured through the InsurePal platform. It’s a new type of mutual insurance secured by blockchain technology and social proofs.
Obviously, peer-to-peer insurance can be tricky. How can you minimize fraud? How can you ensure the other person will pay in the event of an accident? That’s where InsurePal uses social proof.
Let’s say you need car insurance. You’re a good driver who hasn’t had an accident in years. The price of your insurance is $1,000 per year. Through InsurePal, you might find an insurance offer for $600 per year. All you need to do is find a single endorser who will guarantee your good driving record. You send an invite to your friend, and your friend guarantees your good driving record with a credit card. That friend receives $100 in IPL tokens.
When your friend enters her credit card data, she’s exposing herself to a potential payment of $550 ($400 of your savings, $100 of her cashback IPL token bonus, and $50 in penalties). Your friend’s credit card will only be charged in case an at-fault claim is filed against your policy within the next year. If there’s no claim, then you paid only $600 for your insurance and your friend got $100 of IPL tokens.
If you want to reduce your insurance costs even further, you can find more endorsers.
Basically, InsurePal lets you spread out the costs of insurance among a pool of people – similar to how mutual insurance works. The main innovation with InsurePal is the use of social proof to verify someone’s safe driving record or ability to pay for a claim. The blockchain secures everyone’s commitments to the insurance pool.
InsurePal isn’t just for car insurance. The InsurePal whitepaper also mentions a business transaction between two people on opposite sides of the planet. These people want to complete a business arrangement, but have no reason to trust each other. Every time these people make a transaction to exchange goods, they can use the InsurePal blockchain business transactions module to complete an upfront agreement, including the terms and conditions of that agreement. As more transactions are completed, a person’s social proof trust score grows.
Overall, the InsurePal platform acts as a global provider of various insurance modules based on social proof mechanics. With InsurePal, all interested third parties can use the platform as standalone providers by paying a predetermined fee (when used for B2B transactions). Meanwhile, for B2C transactions, InsurePal aims to provide a customer-centric experience where users can easily navigate through the process of obtaining the best insurance premium via a mobile device decentralized app.
The InsurePal ICO
The IPL token sale is scheduled to begin on January 16, 2018. The tokens are ERC20 tokens on the Ethereum blockchain. The sale will last for 21 days.
Of the total supply of 300,000,000 IPL tokens, 67% will be distributed during the token sale, with the remainder dedicated to founders and the team (24%), advisors and ambassadors (6%), and user incentives (3%).
Tokens are set at a price of $0.10 during the token sale. The company is seeking to raise a minimum of $5 million from the token sale (soft cap), with a hard cap of $18 million.
The InsurePal token allows the social proof process between different entities to take place using the distributed ledger. The insurance and endorsements are conducted solely in IPL tokens, and customers can use IPL tokens to get a discount on their insurance premiums.
Who’s Behind InsurePal?
InsurePal is led by Matt Peterman (Co-Founder and CEO) and Tom Volk (Co-Founder). Peterman has been working in insurance and venture capital for 15 years. He’s currently an executive and business developer for an insurance detection company called Salviol Ltd.
Tom Volk, meanwhile, is a founder of Adacta Group, a company developing a proprietary insurance core system widely used by EU and Russian insurance companies. That company has 25 million EUR of annual revenue and a network of 450 professionals in 7 countries.
InsurePal’s first step is to launch its insurance platform in the UK. They’ve also filed a patent for their social proof system in the United States and worldwide.
InsurePal aims to create the “insurance of tomorrow’ using blockchain technology and social proof guarantees. It’s a peer-to-peer insurance platform where you can receive endorsements (backed by financial obligations) from your friends. The company plans to disrupt today’s insurance structure, enabling a new type of coverage for life and businesses.
Visit InsurePal.io to learn more about the platform. The ICO is scheduled to begin on January 16, 2018.