Introduction
People have been using insurance to safeguard their insurance as well themselves. This has been going on since the beginning of the mankind. From safeguarding their transportation materials started by the traders in the ages to getting insurance for multiple things. The technology has changed everything, now we can avail several insurance services ranging from life insurance to car insurance to even mobile insurance. The insurance industry expanded widely, thanks to the fact that it covers a lot of risks.
Currently, the insurance companies use brokers and middle-man to sell their insurance products. In between the brokers take up a lot of commission which generally ranges between 15% to 25% of the cost of the premium. Vernam aims to revolutionize the insurance industry by using the shared ledger and blockchain technology.
About Vernam (Website: https://www.vernam.com)
The use of agents and brokers makes the cost of insurance really high. Insurance companies have been following this thing for a long time now. This is a major problem because an average or below person cannot purchase insurance policies. The current insurance market stands close to 4.5 Trillion USD. Imagine how much the people are paying in commission.
Insurance has always been a hard-selling product and this is the reason why the brokers and agents are paid up to 25% of the insurance premium and the commission for the first year is as high as 40%. Vernam plans to solve these by selling insurance premium online.
There is a lot of lack of efficiency between the agent/broker, the insurance company and the end-customer. Vernam will create a marketplace through which the lack of transparency and the resulting misinformation can be removed. With the re-distributed ledger, which can't be altered will result in complete transparency for both the parties.
Business Model
Through the Vernam platform, they aim to revolutionize the insurance industry by making it simpler and easier to buy life insurance. Imagine, how awesome it would be if you get the 20% back which used to go into the pockets of middleman and agents. Different insurance companies and brokers will be offering services through the Vernam platform.
Upon purchasing of an insurance product by the user through the platform, the end-consumer/ or the user will receive the equivalent amount of commission as it may have been received by the broker in the form of VRN Tokens. We'll talk about the VRN Tokens later. These VRN Tokens can be later exchanged to fiat-money like USD/EURO or can be converted to some other tokens/cryptocurrencies like Bitcoin, Ripple or Ethereum.
Tokens and ICO
As discussed above VRN Tokens will be used throughout the platform. Other than getting the commission in form of VRN Tokens, all the transaction will be done in VRN Tokens throughout the platforms.
To raise funds for the development of the platform, Vernam will be organizing an ICO through they will be selling VRN Tokens. During the ICO, a total of 500 million VRN Tokens will be available for sale at 40% discount which is half of the total number of tokens that will ever be available. Any unsold VRN tokens in the ICO will be burnt.
These VRN Tokens will be based on the Ethereum's ER20 platform. The token sale will start from 08th May 2018 and will last until 18th June. Bitcoin and Ethereum can be used for purchasing the VRN Tokens in the ICO.
Out of the other 50% tokens available, this will be distributed as follows:-
a) 20% for the crypto safe fund
b) 15% of founder and team
c) 7% for advisers.
d) 3% for bounty
e) 5% for liquidity pool.
Concluding Verdict:
I feel that Vernam is a fantastic and noble idea. The launch of this platform will bring a lot of clarity on the working of the insurance industry. The idea of giving back to the customer is really great and this will help all the parties involved in the ecosystem. The platform will truly revolutionize the insurance industry.
More details on:
Website: https://www.vernam.com
Whitepaper: https://www.vernam.com/assets/uploads/Whitepaper_Beta_v015.pdf
Blog By: Lanirm Knayam
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