It is not a problem. It is just old fashioned way of financial industry to work. New technologies bring new capabilities and efficiencies.
REGA users will pool risk premiums together and decide on payments if smth happens to community members.
I wouldn't call Bitcoin movement as a bubble, rather corrections. Nothing will happen to risk pools as the risk is distributed, all risks shouldn't realise at once. The volatility with currency happens all the time, for example some foreign currencies depreciated twice in some countries. We expect crypto volatility will decrease with time.
Mutual insurance companies lack technological efficiencies as insurtech solutions have.
Claim adjustment in crowdsurance is done by expert voting on the platform, they vote with their tokens. Tokens will be traded on the exchanges, anyone can become an expert and recieve incentive from part of premiums they process. Sorry you missed that point, cause didn't care to go deeper inside the concept.
Hello Leo Mor,
What capabilities and efficiencies will new technologies bring to the insurance business? Who or what is going to invest the premium pool? You refuse to answer this question.
You dont have to call it a bubble if you dont want. Bitcoin went down 40-50% for two years in 2014-2015. You alluded that your premium pool will be in Bitcoin. What happens if Bitcoin goes down 40-50% again for 2 years? How is REGA going to pay the claims?
So what if Mutual insurance companies lack technological efficiencies as insurtech solutions have. What are these technological efficiencies that will resolve the flaws with REGA that I had pointed out earlier?
Claim adjustment is done by voting? With what information are the token holders going to use to decide how to vote? Lets say Im an insured. I claim that my car is destroyed and I file a claim. How are the token holders going to verify that Im telling the truth? Do I send in photos? If so, I can grab any photos from Google Images and defraud your token holders.
Lets say my car is truly damaged. How will you ensure that I get it repaired at trustworthy body shops? How do you ensure that I do not send it to my cousin and tell him to over-charge REGA? How do you ensure that I sent you the real receipt, and not a fake one that I made up? Who is going to process these receipts and send the reimbursement to me?
If I was a token holder (voter), I would not want to review information from hundreds of claimants to ensure that they are not defrauding me or over-charging me. Even if your token holders are willing to do this, they are not trained adjusters. Are you going to send them to training school?
I read the white paper. If you want me to go deeper, you need to provide more information and especially good answers to my questions.
I think youre missing the point. The REGA team didnt care to go deeper inside the insurance business to understand how it works.
I don't think it's in your best interest to keep discussing REGA. The more we discuss it, the more flaws we uncover.
I would still want to address those issues to make it clear. Sorry to bother you.
New technologies that are brought to the market: smart-contracts technology, information stored in public Blockchain, risk segmentation through scoring system, machine learning technology supported by Microsoft (our partner), oracles concept connected to IoT.
Insured pool member will invest his premium into mutual pool represented by smart-contract in Blockchain.
REGA started not from cars, but from pets, which is less risky product and more social. Car crowdsurance claim adjustment can be realized through telematic hardware connected to smart-contracts to know exactly if the accident happened. Claim adjusters in insurance companies also check basic facts, no sophistication. Here the information about the claim is stored safely in Blockchain.
Investment assets of Russian insurance companies also depreciated 50% as the currency depreciated, it is a risk but he is manageable. As i said before even if the crypto went down for a month, still all the accidents don't happen at once. All transactions are traceable and transparent in Blockchain compared to traditional insurance companies that sometimes hide the transactions behind insolvent balance sheets.
And about our "not going deeper" in insurance market, let me point out that Team members been working in insurance companies and banks for more than 15 years. Head of the biggest Insurance company in Russia Sberbank Insurance is part of the Advisory board, as well as Jake Diner, insurtech professional from Silicon valley.
Please investigate.
For you to get closer to the concept please consider reading provided professional article about insurance on Blockchain.
https://www.dropbox.com/s/ztie24ezn1lejll/Chain_Of_A_Lifetime_December2014.pdf?dl=0Thank you