Insurance is an industry that is more than 300 years old with a huge market value.
However, the capital efficiency of traditional modes of insurance is less than 20% due to a lot of funds being paid as salary of insurance brokers and overheads of business operation. Most insurance organisations are overstaffed, and overall mechanism lags behind the pace of market development, leading to avoidably low operational efficiency as a whole.
How to reduce the operational costs of insurance? Blockchain technology gives the solution in a new way.
Yingning Wei, the former vice chairman of CIRC, said in 2016:“ Instead of internet insurance, blockchain technology is going to overturn the traditional insurance.”
That’s what MediShares sees.
What will insurance be like in the future?
Skyscrapers of the traditional insurance company
Centralized, high costs
Limited reduction of the cost
Mutual aid “smart contract”
Decentralized, reduce the operating costs to zero
Mutual aid contract, a program runs on blockchain, can not be changed by anyone once it is recorded on blockchain, as same as the data saved on blockchain.
Mutual aid contract is going to be the future insurance thanks to its irrevocable characteristic.
It has a huge advantage over the traditional insurance, as its settlement process will be implemented by the tokens locked with smart contract, which ensures the promised compensation will be positively fulfilled .
As a mutual aid contract will replace an insurance policy, there will be a huge contract marketplace, which is exactly what MediShares is working on.
What is MediShares?
MediShares is an Ethereum-based, decentralized, open-source mutual insurance contract platform.
Globally, any organisation or individual can be qualified for settlement under mutual aid contract by locking MediShares MDS, so as to be eligible for the mutual aid amount so specified in the contract.
Globally, any organisation or individual (which is properly licensed and/or otherwise qualified, as assessed by the Platform) can create mutual aid contracts via the smart contract template provided by the Platform, and MDS will be paid to these contract creators.
Infinite possibilities of mutual aid contract based on MediShares
Mutual Aid Contract for Serious Illness
Serious illness insurance contract mainly covers insurance for serious illness such as cancer, for which settlement is completed upon completion of claim settlement investigation, result publicity and community supervision, and as a general rule there will be a half-year observation period.
MediShares’s first participant-Zhongtopia, which has more than 9,000,000 mutual aid members and owns rich experience in mutual aid community operation product design, will create mutual aid contract for serious illness on MediShares. This will be the first mutual aid product without capital poor in history and will improve the efficiency of mutual aid. Zhongtopia’s low operational cost model naturally matches blockchain’s decentralization.
Mutual Aid Contract for X-sports Fans
Take diving of X-sports as an example, the number of global diving fans is large, but this risky sport of the highest death rate is not matched by corresponding accident mutual aid product.
Through the Platform, the members of diving association (e.g. Professional Association of Diving Instructors) or community can create mutual aid contracts targeting diving fans.
Mutual Aid Contract for Various Illness
Many patients of chronic diseases (e.g. HBV) are reluctant to buy insurance for fear of disclosure of personal information (which may result in unemployment).
With cryptographic methods such as zero-knowledge proof, anonymous illness mutual aid contracts of blockchain can protect the user’s privacy, while at the same time deliver fair and impartial mutual aid assistance.
Mutual Aid Contract for Supercar Owners
Due to expensive maintenance price, supercars are declined for insurance by most insurers, or supercar owners are discouraged by expensive insurance premium. To illustrate, the seasonal expenditure of Top Gear on Hunan Satellite TV could not afford to pay the insurance premium for one test drive of a Ferrari 250 GTO.
Supercar club or owner can remarkably reduce the cost by creating mutual aid contracts for use by other supercar owners.
Mutual Aid Contract for Disastrous Weather
Disastrous weather is small probability event in a certain geographic area, but from a global view it occurs relatively. With the trend of increased frequency of these event, many families suffer a lot as a result.
Automatic triggering of smart contract is achieved by reading global independent and unbiased weather and earthquake related interface, so as to realize full automatic mutual aid contract in its truest sense.
Mutual Aid Contract for Virtual Asset
With more and more virtual digital assets coming into the life of ordinary people, market demand for safe virtual asset insurance is increasing.
The user can create mutual aid contracts established for the risk of loss from transaction of virtual asset; once the user suffers loss and provides publishable evidence, he/she will be recovered such loss.
Advantages of Decentralisation
No Capital Pool: All tokens are locked by smart contract.
Low Operational Cost: Smart contracts and DAO will significantly reduce the operational cost.
Incentive System: Anyone who become insurer in MediShares shall gain MDS Token from the marketplace.
Value Sharing: Policyholders will able to share the community profits and value.
Global Marketplace: Break the geographical restrictions and allow users to participate globally.
Mission & Vision
MediShares is going to build a more efficient and fair blockchain-based mutual aid contract marketplace to create a better health care system and improve social efficiency. It is believed that blockchain technology will achieve the inclusive finance.