Umbrella Coin – UMC ICO Democratized Insurance ETH Blockchain?

Umbrella Coin is a decentralized insurance platform that aims to disrupt the insurance industry. Find out how it works today in our Umbrella Coin review.

What Is Umbrella Coin?

Umbrella Coin, found online at, is a cryptocurrency-based platform for the insurance industry. The company plans to democratize the insurance industry and end high prices for healthcare, vehicle insurance, and other types of insurance plans.

“Umbrella Coin will protect you from being held hostage by insurance monopolies across sectors by covering all out-of-pocket costs regarding insurance. No insurance agents and middlemen with incentives to deny your claims,” explains the official website.

Using Umbrella Coin is straightforward. You buy UMC tokens, then use those tokens to purchase a policy.

Here’s the unique part about Umbrella Coin: if you don’t end up using your premium, then the company will refund 100% of your funds by the end of the plan.

Overall, Umbrella Coin is building a new type of risk management platform for individuals and businesses.

How Does Umbrella Coin Work?

Umbrella Coin is built on blockchain technology. The company plans to use blockchain technology to avoid the fees and management costs associated with traditional insurance companies.

The goal is to have UMC-based insurance policies augment standard insurance policies like life and health insurance or property casualty insurance.

Another key goal of Umbrella Coin is to save considerable fees by cutting out the middleman. Today, many people have insurance but never use it because of high fees like deductibles and other hidden expenses. All of these fees are designed to reduce the chances of a customer making an insurance claim.

Initially, Umbrella Coin wants to make UMC viable for standard benefit packages before later expanding to full insurance policies.

What Problems Does Umbrella Coin Seek To Solve?

The creators of Umbrella Coin believe the insurance industry is ripe for disruption. Here are some of the specific problems that Umbrella Coin seeks to solve:


Many insurance policies are sold through an agent or broker. These agents are licensed to sell insurance in certain jurisdictions and make a commission on all insurance sales. The cost of their sale is passed onto the policyholder. This increases costs for the industry as a whole. Umbrella Coin aims to solve this problem by allowing policyholders to bypass this commission-based purchase process and purchase policies from other coin holders instead.

High Premiums:

Insurance is sold based on the perceived risk of the policyholder. In situations where the policyholder never makes a claim, the insurance company makes an enormous profit. Rates for health and life insurance increase as you age, and rates for property insurance increase with every incident. All of these things conspire to mean that policyholders have little incentive to claim their policy due to high premiums.


Money from insurance policies is pooled into funds, including stocks, bonds, precious metals, and other investments. Insurance companies collect investment returns from policyholders’ money. In other words, policyholders lose on both their premium costs and the money they would have collected in interest. As the Umbrella Coin whitepaper explains, “Insurance companies are reduced to glorified money managers, fighting to pay as little as possible in claims to protect their bottom line.”

How Does Umbrella Coin Work?

How does Umbrella Coin plan to solve the problems listed above?

Initially, UMC will operate with coin holders acting as both policyholders and insurers. The company doesn’t want to replace traditional insurance – they only want to complement it. The platform is careful to state that it’s not an insurance company – it’s a platform to ensure customers aren’t left with high out-of-pocket expenses after high insurance premiums.

Here are some of the key ways in which Umbrella Coin works:

  • The maximum benefit a user is entitled to receive from the policy is 5 times the UMC coins spent within their policy period (365 days); so if you buy 2 ETH of UMC during the token sale, you’re entitled to receive 10 ETH worth of benefits for the year
  • At the end of the period, if there were no claims made or the initial invested amount wasn’t used, the user gets their unused UMC back; if you buy 2 ETH of UMC during the token sale, and you only made 1 ETH of valid claims, then you’ll get the remaining 1 ETH worth of UMCs returned to you
  • Users can choose to terminate their policy any time – even prior to the maturity date; doing so will incur a 40% penalty to avoid fund depletion

Guarding against fund depletion is obviously a key strategy for Umbrella Coin. The company hopes to guard against fund depletion with early withdrawal fees (a 40% penalty), a cap on individual investments, starter fees, cooling periods, fraud claims, and minimum policies, among other mechanisms.

Meanwhile, any UMC coin holder can create any policy. That policy will be tied to an individual’s wallet address.

Who’s Behind Umbrella Coin?

Key members of the Umbrella Coin team include Terry Tata (Founder), who has worked on computer software projects at multiple Fortune 500 companies – including Raytheon and Rackspace. Other key members of the team include Roshan Parikh (Lead Blockchain Developer). Full details about the team can be found online at the official website.

Umbrella Coin launched its whitepaper online in July 2017. The client and smart contract development will take place throughout August and October, with a full client launch scheduled for October 2017. By May 2018, Umbrella Coin hopes to launch its full-featured platform.

The Umbrella Coin Crowdsale

The Umbrella Coin crowdsale launched on August 20 and is scheduled to last until October 20. The company is issuing 100,000,000 tokens as part of that crowdsale at an exchange rate of 1 ETH = 600 UMC.

There will be a minimum transaction amount of 60 UMC (0.1 ETH) and a maximum transaction amount of 1.8 million UMC (3,000 ETH).

Bonuses are available. The token sale is hoping to raise 100,000 ETH, with a minimum goal of 5,000 ETH.

A total of 68.8% of the total supply (68 million tokens) will be available to participants.

Further details about the Umbrella Coin ICO and crowdsale can be found in the UMC whitepaper.

Umbrella Coin Conclusion

Umbrella Coin is an insurance policy platform built on the blockchain. The platform aims to democratize the world of insurance policies and make it easier for individuals to access cheap insurance policies. To be clear, Umbrella Coin isn’t an insurance company. The company sells insurance plans that complement your existing insurance. Umbrella Coin plans to target health, life, home, and vehicle insurance initially.

You can learn more about the Umbrella Coin project and their UMC token online today at

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