ChronoLogic Talks To Etherisc about Crypto Loan Insurance - YouTube

rI'm Renat Co-Founder of Etherisc Etherisc is a decentralized insurance protocol

to collectively build insurance applications so at 20 year old for

example in China could earn 3% of revenue insurance company in the United States

so as a result we have a world we building world where independent workers

not large insurance companies but independent workers make a fair share of

created value and consumers get cheaper better insurance products that's

currently not available and investors get access to risk as an asset class

which is currently not available to regular investor

you're right they have to you know invest in the stock market and for some

insurance company that they don't really like and then the insurance company has

all kinds of practices that they don't even maybe agree with so we need this so

much for so many different reasons

yes no one likes insurance companies and one

of the key problems so people ask so what problem exactly that you trying to

solve there are two constituents the there are consumers and there are

developers that we're serving the consumers we serve them indirectly

our work would work with developers they are building insurance

applications called keepers so but the consumer is in their problem that's what

drives this whole transformation the first of all the asymmetry of power as

an individual consumer you really have no power to force insurance company to

pay or not and...

yeah you can try to call them and be in customer service for

hours but then eventually you have to hire a lawyer

exactly and very few people have funds time connection or even

understanding how to get what they're entitled to and so we have situations

multiples like where consumers are in with position when there's a meeting

bona fide truthful claim but if one insurance company says that the amount

will be much smaller so we have one situation

one guy reports that they submit six number claim sick digits claim for the

destruction on the house and the insurance company Mapfre in Puerto

Rico they gave them an offer for 4-digit and there is no way to do

anything unless you sue them right you can completely regulator but

insurance companies have no incentives to pay more because they have the

maximizing profits there are for-profit companies and so the symmetry of power

is is one problem the second problem is the cost of this trust premium is that

for every dollar that you let's say sent through let's say Lloyd's for example

or traditional insurance companies to share your risk with other people I know

it's in 2016 the insurers who shared gave dilutes the premiums they only got

49 cents back so the 51 was kept as a profit as a processing like all cost of

marketing right so it's very inefficient risk transfer mechanism where it cost a

lot it's very expensive to just share risk between us right

so it's called it we can't let the trust premium so the trust premium typically

is half of what you give to the risk pool is being returned and while they're

making money on it on investment income while keeping this your funds right so

this is the consumer problem but developers have are also in no position

to solve it because large insurance companies are not incentivized to let

developers build insurance products they're effectively a government

sanction oligopoly with big capital having licenses right you cannot really

build an insurance company yourself right unless you have a lot of connections

capital right so what Etherisc does provide the common infrastructure for individual

developers to build the new insurance products in infrastructure such as smart

contract templates ui/ux templates templates or business plans and even

rental of insurance license so anyone can start their own insurance company by

renting these components and getting components in open source form it's like

you take an insurance company open source the whole thing the risk models

the actuarial work the business plans approval documentation to get the

various approvals right and and so our goal is to enable multiple keepers to

have 5000 individuals to operate build and operate their own insurance company

where they're entitled to percentage of revenue to underwriting profit that left

after the premiums and claims are paid and investment income that they can

decide how to distribute to keep it or send it back to the insured pool so it's

like 5,000 Minimum in profits this is what we are creating and the

first ones are already the first products when already live on main net

flight delay insurance was available on test net in September 2016 for

developers flying to Shanghai last year we added real license to it so it the

sales of fully regulated insurance by a smart contract began on October 25th

developers who flew to DEVCON in Cancun 77 bought the policy is five got the

payouts for the delayed flights and after we looked into smart contract

there was three ether remaining but no one else to pay all flights landed so

that was the first underwriting profit generated by a decentralized insurance

company smart contract yes

I'd like to ask you quickly about crypto loans

because you know ChronoLogic has a peer to peer crypto loan platform and you

were talking about the you have this in your vision to have some type of pool

yeah well it's not just vision now it actually it was one of the proposals

made so people make proposals for interest products that they want to

distribute or they get their token economy is needing in order to get mass

adoption so having a safety net is a way to get mass adoption it's safe for

participants to come in and start using a new product or a DApp or protocol and

so one of the networks crypto backed lending networks came to us asking to

build or have one of our members of our community to build an inference product that is a

collateral protection insurance for lenders lending their money to borrowers

that put crypto is a collateral right and many lenders are not comfortable

especially institutional ones to land in a way where in addition to credit

risk there are a lot of other risk so we decomposing this for now a number of

crypto back lending networks and building them a product that will allow to the

lenders to be protected against devaluation of collateral not due to

volatility but because of either the underlying project got damaged to

the point where the value of this token is like drops by 90 95 percent or more

or the link if it's tokenized asset maybe there was a problem there

there are different risks associated...

there are a lot of different risks so we're building

a policy for a number of crypto back lending networks who are now joined during our

working group that provide the requirements and they receive a policy

where the lenders on their network would be protected they can elect that the

loans that are they're issuing must be insured or could be insured optional right

the chronologic loan platform can be part of that

yes so potentially any we're inviting all crypto back lending networks as well

as those lending networks that will operate unsecured loan marketplaces to

join the working group and receive access to the insurance policy which

will pay the lender in case something happens with the underlying collateral

whether it's a bug hack or maybe a borrower simply made if they didn't pay

taxes the government could take it away from from a lender so these are various

fix that we're working on to build this policy

Q: how can people go to learn more about eitherisc?

they can go to etherisc.com they can go to github

our telegram channel is very inviting and we have a

number of working groups who will direct any interested party to one of the

subway ecosystems of operating on Etherisc protocol that are building insurance

products so we have a need for those who could be product managers for data

scientists to provided the risk models for example for full stack developers

that can operate an interface that relayers distributors can embed into their

websites to sell insurance

yes and they people come in they develop what they like in the in the

product which they like and then they put a price on it and there's a provide

their ethereum accounts so that portion of the insurance premium could put a certain

percentage of a fixed price per API call for example could be deposited to their

individual ethereum accounts so that individuals not corporations get a fair share of value

excellent thank you so much for being here at EdCon and

teaching us about Etherisc

yeah thank you very much