DigitalForest Blog

Top 5 blockchain insurance projects

Overview of insurance startups using blockchain technology
Kristina Novikova
Research Analyst at DigitalForest
December 12, 2019
Using blockchain technology for building various solutions for the insurance industry makes it more reliable and transparent for customers.

Blockchain helps to introduce completely new opportunities in insurance and significantly upgrades this industry:
Event-based smart contracts ensure automatic insurance payments, reduce risks and improve the quality of customer service in general
Blockchain systems make markets decentralized, fully digital and more secure, reduce request processing time and transaction costs
Intermediaries withdrawal and transparency provision that comes along with public blockchain platforms increases system trustworthy, significantly increases the speed of work and reduces its cost
High speed of transaction processing helps to make service costs more individual and makes the market more flexible
New types of insurance and joint economy emerge and develop: P2P insurance, microinsurance, parametric insurance and others
Insurance accessibility is increasing and more and more people get access to this market
Learn how to implement blockchain into any insurance business
We selected 5 most interesting and living projects that apply blockchain technology in the insurance industry:

Etherisc is a start-up that developed an Ethereum blockchain-based decentralized insurance platform.

The company develops products on this platform in-house, and also provides an opportunity for other organizations to use the platform to create and distribute their own applications, providing them with a shared infrastructure, product templates and an insurance license-as-a-service.

The first developed product is a system for handling insurance claims for delayed flights. The platform allows passengers to purchase an insurance policy using cryptocurrencies or traditional currency, and insurance payouts are made automatically upon the occurrence of an insured event, which is, in this case, a flight delay.

The platform is based on open source smart contracts, which makes the system transparent and provides a high level of trust. Decentralization of the system makes sure that there is no conflict of interest.
An example of a certificate of insurance, issued by Etherisc
The solution was developed using its own tokenomics model. The platform uses DIP utility token to execute transactions.

In addition, the startup also works on hurricane insurance, crop insurance and cryptocurrency wallet insurance solutions.
Medishares is a decentralized marketplace for mutual insurance in various spheres. The platform is based on the Ethereum blockchain and uses smart contracts to connect users who are looking insurance services with those who provide them.

The MediShares insurance model assumes that by joining the system, insurers deposit a certain amount of money, providing a fund for insurance payments by purchasing MDS tokens. In order to motivate insurers to store the funds in the system, they get a reward in MDS tokens. Users, who want to purchase an insurance, get access to a smart contract template, which allows them to pay a reasonable price for their certificate of insurance.

The platform is based on DAO principals and does not require personal data from both sides, which increases the system reliability and confidentiality. Since there are no intermediaries and the platform is decentralized, the insurance fee is minimal.

Decentralized applications for health insurance, extreme sports insurance, luxury cars insurance and others will be integrated to the platform.

The MDS token is traded on 9 exchanges, including Huobi Global,, Dcoin and others.
PAL Network is a Singapore-based startup that develops blockchain insurance solution with artificial intelligence and machine learning.

The platform was created to provide people outside the banking system with insurance services and bridge the gap between consumers in developing countries and insurance providers. PAL Network provides a new level of accessibility and restrictions reduction, associated with the traditional insurance industry.

The PAL Wallet mobile app is available on the Play Market, and there is a desktop version on Github.
PAL Wallet Android app
Using the app, users can apply for a car insurance, cancelled or delayed flight insurance, earthquake insurance, cancer insurance or even a broken smartphone screen insurance.

An insurance policy can be purchased for traditional currency or platform tokens, which makes the certificate 50% cheaper. Insurance payments can be made in USD or PAL tokens, based on user choice.

PAL Network provides partners with RESTful API access to simplify the distribution of insurance products.

Alpha and Beta versions of the platform were launched on the Ethereum public blockchain, and now the platform operates on its own blockchain network: PAL Network.
Teambrella startup provides users with P2P insurance services. Users are united in teams and provide insurance for each other.

In case of occurrence of the insured event, the team makes a decision on insurance claim payment by discussing and voting, making sure the process is transparent. An open process ensures fair decisions and strengthens social relationships. Users do not have to constantly take part in the vote, they can appoint an authorized representative. Voters receive a reward in platform tokens, the amount of the reward varies depending on the user rating of trust.

Team members pay insurance payments from cryptocurrency wallets located on the Bitcoin and Ethereum blockchain, which they control independently. Private keys of these wallers are stored only inside the individual client system.
Demo team
Teambrella platform, as well as both iOS and Android applications, are already available to users.

Now there are several pilot teams on the platform:

  • Pet Insurance in Peru, Argentina and the USA
  • Bicycle insurance in the Netherlands and Germany
  • Car insurance in Russia
VouchForMe, previously known as InsurePal, is a blockchain platform with a unique concept.

The application is the world's first decentralized social insurance based on community approval. A similar mechanism is already used in other areas, for example, in lending, when a loan recipient gets benefits if he has someone who can vouch for him.
VouchForMe business model
The main strategy of the platform is to provide insurance companies customers with discounts if they have a voucher providing a financial guarantee. A platform user can ask his friend to become his voucher on the platform in order to earn a large discount on the insurance premium. The voucher provides a financial guarantee, which will be withdrawn from him only if the policy holder violates the terms of the insurance contract. The voucher motivation is enabled by instant payment of platform tokens, which can be stored as an investment or be sold on an exchange. The platform guarantees that the insured client will receive final compensation if the other party has violated the mutual agreement.

The VouchForMe model is a classic combination of traditional insurance and P2P blockchain approval, backed by social factors. According to the founders, this approach creates a positive reinforcer for the insured person and allows him to become more responsible.

The VouchForMe solution is patented. The first web version of the platform is already available to users.
Not only startups are trying to actively introduce blockchain into the insurance industry, but also enterprises are joining together to research the capabilities of this technology. For example, the B3i consortium has united such insurance giants as Allianz, Liberty Mutual, Munich Re, Swiss Re, Zurich Insurance Group and others. IBM and Guardtime are actively introducing their own blockchain platform for the insurance industry. We can see that blockchain technology can indeed modernize such a conservative industry as insurance and bring it to a new level of development.


Any questions? Text us

DigitalForest Blog

© 2017-2019 DigitalForest Ltd.
Republic of Belarus,
Minsk, 220036
Karla Libknekhta, str., 66, office 403
Tax ID: 192795922

We use cookies to provide the best site experience. By continuing to browse the site, you are agreeing to our use of cookies.
Ok, I agree