InsurePal to work with Mattereum to create legally enforceable smart contracts for insurance Dec 18, 2017

Mattereum and InsurePal today signed a letter of intent to collaborate in using blockchain to empower individual users of the technology, recognising that public and individual trust is central to the future of widespread acceptance of the blockchain, a digitized, decentralized, public ledger of transactions.

Their shared vision is of a future blockchain economy with three pillars: insurance, arbitration and identity. InsurePal will offer insurance of blockchain business transactions while Mattereum will act as a decentralised court of arbitration for disputed smart contracts. The collaboration will bring together InsurePal’s social proof model of shared-risk insurance and Mattereum’s dispute resolution infrastructure, both underpinning and boosting the growth of the user-managed crypto-economy. Together, insurance and dispute resolution support claims about identity that can be relied upon because those claims can be insured and compensation in case of misidentification can be legally enforced.

The decentralized economy is a rapidly growing alternative economic sphere. Crypto currencies have already attracted many investors and the underlying technology is quickly evolving into a new ecosystem for business, offering ever more value to its users.

With constantly improved engineering, a new internet era is emerging that will, over the next decade, radically change business processes by eliminating the need for a whole range of intermediaries.

The potential cost and efficiency benefits are already understood but a great deal of responsibility for the effective functioning of the system now moves from institutional intermediaries to individuals. For blockchain to work, individuals must trust the system.

Mattereum is building the first Internet of Agreements infrastructure project, bringing legally-enforceable smart contracts to the marketplace and enabling the control and transfer of rights in material and intellectual property as well as digital assets, enforced by an international commercial arbitration court.

Vinay Gupta, one of Mattereum’s founders and previously release coordinator for Ethereum, said: “To me, InsurePal looks like very good, clear thinking on how to model risk in insurance in new ways, and deploy new technology to implement those risk models. That’s how we make progress: new ideas that turn into new experiments. I’ve contributed a little to their models, and I’m looking forward to working with them on both modelling and implementation in 2018.”

InsurePal is the world’s first decentralized social proof insurance service. It aims to accelerate trust between members of the crypto community when transacting products and services, building a much more affordable insurance sector based on social proofing through rewarding behavioural patterns that benefit not only individuals but also groups and society as a whole.

As Matt Peterman, InsurePal CEO explains: “InsurePal challenges current practices in the insurance industry, which fail to provide a transparent and fair pricing model and needs a new model of risk selection.

Our platform connects responsible individuals in a peer-to-peer insurance relationship and avoids covering the costs of irresponsible individuals by introducing social proof endorsements, spreading the onus of financial risk on the introducer as well as the insurer. In addition to the existing insurance markets, we will engage with new markets emerging alongside blockchain.

We believe that ensuring financial compensation in a case of a breached business transaction agreement will deal with the lack of trust between stakeholders and greatly accelerate blockchain acceptance. Social proof can bring the premiums down to a level where insurance can be included in any blockchain based smart contract transaction which, in itself, will be a major public benefit.”

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