Token-based Insurance Solutions on Blockchain

Understand

With the rising demand for protection against new risks such as loss of digital assets, novel insurance services and products emerge.

• In particular, token-based insurance solutions on blockchain transform the insurance business by providing cover for new risks and streamlined, (semi-)automated underwriting and claim processes.
• In the chapter, we present a general framework of token-based insurance solutions, delegating their fundamental building blocks that include core roles, main tokens and assets, as well as key processes and operations.
• We describe three major token-based insurance solutions in the market and compare them in terms of native token functionality, tokenized cover types, claim assessment process and capital model.