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Insurance without premiums

Insurance is broken, centralised, and out of date.
Currently it takes a legally instituted corporation to collect premiums, manage a massive pool of money adhering to many regulations, decide when to payout and rake off the profits.
But what if the insurees trusted one another instead of the insurance company?
Advantages:
Transparency about rate of risk would mean premiums were realistic and increasingly accurate over time.x

  • Cost savings from not managing a pile of money
  • cost savings from not complying to regulation
  • cost savings from not feeding a multinational
  • cost savings from not paying actuaries.
  • Strengthens community and solidarity

Here’s how it could work.
A member is given access to join a mutual insurance circle which is a private group of trusted members.

  • The member registers the item to be insured with a value and is given an account with balance 0;
  • That value represents their stake in the pool.
  • When an item is reported lost members go through some voting procedure to decide to pay out.
  • Each member’s account is debited in proportion to their stake
  • Some members pay the bank account of the loser, and in so doing, top up their own accounts
  • If a member wants to leave, they pay another member or claim their positive balance back.

No money passes through the coop
Accounts might be kept on a blockchain - might be an etherum app which does simple accounting and voting.
After a loss, a members bank account should be credit within a very few days.

The software for this could be very easily published and run by any group, community group, social club, union etc.
There would be a manual or maybe a wiki developed on the basis of experience about limiting risk exposure, conflict resolution, governance, voting methodologies etc.

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Do you know about Commoneasy? I think they are doing exactly this, although not on the blockchain AFAIK.

yes this proposal owes a lot to Jip of Common easy.
Looks like he’s been making progress with his site.
I would propose Jip as lead partner i.e. he should be supported and encouraged and financed by Robin Hood and we should all insure our mobile phones with him for starters.

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Hello Steven & Matthew!

Nice to meet you here again Matslats!

I’m here because Mathew gave me a poke last summer to become a member! I would love to cooperate with the Robinhood community! I actually already talked about this with Matslats ofc, Daniel Hassan, Brett Scott and Geert Lovink! Same way of seeing things and tactics, different financial problem. So I think it is more than logic & natural to make this step.

So CommonEays is a P2P “insurance” network based on the design principles of robust Commons. We are not using blockchain so far, I can see the merrit of it, but the bottle neck now is still human interaction and understanding…

So me and my brother Florian explored the last five years different models of self-insurance and I wrote my master thesis in economics about very successful primitive grass roots self-insurance group “Broodfonds”.

The last three years we build a model with feedback from our peers in sharing risk from their smartphones with their social network. the results are promising, we expect we can compete with top-down insurance companies. Actually we expect it works way beter because of all kinds productivity gains you expect from a common governed/managed resource pool. At the end of summer 2015 we made it fully operational. thus also in the Dutch/ European legal context.

Our next challenge build a bigger network and fight of potential venture backed copy cats in the future. That is a bigger problem we all understand here and why we are here. So maybe we can try to build a nested and decentral way of governing this common. Probably a hybrid of a social enterprise and branches of local foundations/ co-ops.

I hope I can count on your support!

In solidarity,

Jip

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