Teambrella to Make P2P Insurance Trustless with Bitcoin
Various aspects of the financial sector need to be made more transparent. Teambrella aims to become a peer-to-peer insurance service utilizing Bitcoin and blockchain technology, giving users full control over all aspects of finance. Also read: Trump Gets Stumped by Bitcoin Billboards Teambrella Combines Insurance & Transparency Anyone who has ever dealt with an insurance company […]
Various aspects of the financial sector need to be made more transparent. Teambrella aims to become a peer-to-peer insurance service utilizing Bitcoin and blockchain technology, giving users full control over all aspects of finance.
Also read: Trump Gets Stumped by Bitcoin Billboards
Teambrella Combines Insurance & Transparency
Anyone who has ever dealt with an insurance company in their life will have noticed the experience is not all that pleasant. There seems to be a conflict of interest between insurance companies and those holding the policy, which creates unnecessary friction, and can leave customers frustrated.
Teambrella is looking to do things differently, as they aim to establish a peer-to-peer insurance organization. As one would come to expect from such an innovative approach, the end user will have complete control over every aspect of insurance, which also brings a lot of responsibilities to the table.
Obtaining insurance through Teambrella requires creating a new team. All of the team’s existing members can decide who they want to add or remove from the team “roster.” With multiple people making up these groups, a voting process has to be established in a professional manner. Teambrella will address this issue by adding a certain weight to team members’ votes, which depends on the premium price paid by that member.
However, team members do not need to vote themselves if they do not want to do so. Proxy voting will be part of this insurance solution although member voting is actively encouraged in the form of a reward. More details on this exact system can be found in the Teambrella whitepaper,
The peer-to-peer aspect of this insurance solution deserves some attention as well. To make this system fair, the risk coefficient of team members will be established. Those members whose coefficient is the same means they cover each other for the same amount. If one person’s risk factor would be lower, they are eligible for more insurance coverage by the other party.
Teambrella Co-Founder, Alex Paperno, shared the company’s vision as follows:
Existing P2P insurance is based on trust and, therefore, can be used for friends and families only. In contrast, our model is based on alignment of interests. We hope that this would greatly scale the P2P insurance model and make it ubiquitous.”
Last but not least, Bitcoin will play a role in the Teambrella insurance ecosystem. Multi-signature wallets will be created, which are controlled by the owner and three out of eight team members. The wallet owner also holds the right to veto any transaction, and withdraw funds as long as all outstanding premiums can be covered.
Team Rules & Disbanding Procedure
Teambrella also institutes some team rules, which can be decided upon by the team members. Rules can be altered by the team creator until a second member is added. Once the team grows, every individual member can vote in favor for or against changing particular rules. This voting process will be carried out automatically on an hourly basis.
It is not unlikely some Teambrella teams will disband over time, which is also subject to a particular set of rules. A disband mode is part of the Teambrella client software, and the execution of the disbanding process can be coordinated through social media, a forum, or any other media.
What are your thoughts on the Teambrella concept? Is it plausible to offer more transparent and peer-to-peer insurance? Let us know in the comments below!
Images courtesy of Teambrella, Shutterstock