Aigang - Blockchain protocol for digital insurance

We are rushing into an era of pervasive connectedness. 55 billion Internet of Things (IoT) devices will be bought over the next eight years. Most of them will be able to diagnose their own operating state and communicate imminent failure. Because none of this requires human verification, there is an opportunity for automated insurance products - insurance that verifies claim events and pays claims automatically.

There is a second opportunity. Most IoT devices collect data. Drones, sensors and cameras can send data that can be used as an input to insurance calculations. This will see an explosion in the number and diversity of insurance products.

With smart contracts and a tokenised system that assesses risk, we‘re building a platform for autonomous insurance, usable by any manufacturer or insurer. Here is the pathway to that:

• Harness the wisdom of the crowd
• Form prediction markets whose members (token holders) are subject specialists and insurance enthusiasts
• Combine prediction markets with insurance pools
• Use prediction markets to assess insurance risk
• Construct algorithms that price the policy premiums and predict profitability
• Develop a token model that incentivises and rewards members for accurate insurance market predictions
• Create a network effect so that all token holders benefit from the efficiencies of the system, regardless of their individual forecasting success
• Automate through smart contracts
• Create a Decentralised Autonomous Organisation (DAO) that uses smart contracts to connect intelligent devices with insurance policies
• Connect to devices that communicate their need for maintenance or replacement
  Automate insurance payouts
• Use re-insurance to handle exceptions
• Automatically sell tokens or issue dividends to keep reserves within target range
• Partner with data providers
• Seek out manufacturers who already collect data on their devices’ operating states
• Collect data from drones and sensors that would help inform insurance risks
• Use device data as intelligence in valuing and creating policies
• Subject to the regulatory environment, encourage third parties to create insurance offerings using the platform
• Cooperate with manufacturers wanting to pre-install insurance policies

The global IoT insurance market is expected to be worth USD 42.7 Billion by 2022 and we are positioning ourselves as a significant innovator in that space.

We have demonstrated a proof of concept with working apps, integrated feeds from data suppliers, all required algorithms and business logic. We now require funds to build a fully operational platform, develop partnerships with data suppliers, extend our organisational infrastructure and promote the platform on an appropriate scale.