Investor Resources
Decentralizing Opportunity
The flow of capital is critical to the success of our society, and capital within the Insurance industry is no exception.
Traditionally, to invest in Insurance products, we purchase shares in their company - you have little direct connection to the capital deployed. You are therefore subject to the structure and outcomes of these insurance organizations - not the insurance products themselves.
Decentralization means you can directly touch insurance products, and directly control your appetite for Risk and Return. The Decentralized Exchanges remove friction and allow capital to flow smarter
In this section, we explore the resources you need to understand this evolving landscape. Many investors we speak with are confused - it's hard to make the leap from Bitcoin to Risk Pools, and in the end, we know as Investors- the more Risk the more Return - we need to find our balance.
How it Works
The purpose of Decentralized Insurance Investment is to remove the complexity associated with insurance. We know about underwriting, reserve pools, and re-insurance, but as an investor, you really don't care, you care about Risk and Return
Simply put, the Decentralized Insurance Investment model follows as:
Product Managers create Insurance Products - they analyze the risks (actuarial analysis) and detail out the associated risks in Reserve Pools. Reserve Pools carry Risk and commensurate Returns. The riskier their product, the higher the return to be expected.
Investors select Risk Pools from the Investment Marketplace, this money is placed into escrow and serves as the Reserve Pool
Consumers purchase Products associated with the Reserve Pools.
Funds flow into the Reserve Pool via premiums collected by the Product, and the commensurate Rate of Return of cycled back into the Reserve Pool
Funds flow out In the event of a Claim from the Consumer, money is moved from the Reserve Pool to cover obligations
Reserve Pool Tokens are traded on the Exchange, which provides liquidity to Investors, both those coming in and those exiting
Glossary
Some key terms and definitions that apply to Investors and Blockchain. The comprehensive breakdown of terms is found in our Glossary
Decentralized Exchange (DEX)
A decentralized exchange is a marketplace that is managed by collaborative systems. Traditional exchanges (like the stock market) centralize activity to control the operation of the market. Conversely, a Decentralized Exchange works to solve common problems. Advantages of DEX include greater transparency, lower friction points, and focus on outcomes.
Store of Value
Applied in the Crypto world, it means the Token or digital asset is used as a means of storing and commuting value. This is similar to a currency or a gold bar. These items carry value for what they recommend. It is this property that makes Bitcoin such a useful instrument - it carries recognized value and is easy to commute.