Introducing Ascent.Insure
Open Insurance Platform for Open Finance
Ascent Insure is an open insurance platform for Open Finance. The project borrows the idea of Lloyd’s London, a market place to trade insurance risks, where premiums are determined by a Dynamic Pricing Model. Capital mining will be implemented to secure capital required to back the risks at any point of time. A 3-phase crowd voting mechanism is used to ensure every claim is handled professionally.
Open market to trade risk
Insure tokens can be used to stake on the risks that Insure token holders feel comfortable with. Insurance premiums are paid daily, and Insure token holders benefit from the system and leverage provided.
Capital mining
By providing capital to the Insure Network, Insure tokens are minted and issued to the capital providers. Token holders can 1) stake on the projects and earn premiums; 2) hold to enjoy the benefit from the growth of the system; 3) sell in the market to realize profit.
Dynamic Pricing & Capital Management
Pricing is determined by real-time supply and demand. The capital model is used to ensure claims will be paid and that systematic risk is under control.
How does it work?
Capital Mining and Insure token Staking
Assets inside the capital pool are used to provide MCR while earning Insure tokens as reward. Insure tokens can be used for governance and are also entitled to profit-sharing.
With Insure tokens, you can stake on the projects you want to back and earn insurance premiums at the same time. You can also stake to accelerate capital mining. Finally, Insure tokens are the only tokens accepted for governance.
Dynamic pricing model
Rather than a single centralized entity deciding the premium rate, or having individual capital suppliers and policy holders negotiate over terms and premium rates, Insure uses the Dynamic Pricing Model to set the price based on supply and demand, tokens backed and the policies bought.
We assume the risk follows the beta distribution:
X ~ Beta(α, β)
α is the total power provided by policies sold, and β is the total power backed for such risk. Then the final.
premium rate is calculated:
P{x ≤ MCR} ≥ 95%
The model has the following pattern:
• When capital supply is high, i.e. more power is backed for a risk, the premium rate will be low.
• When demand is high, i.e. more policies is sold out, the premium rate will increase.
• More token is backed for a risk, i.e. more popular, less volatile of premium rate change is, and vise versa for a less popular risk, the premium rate will be sensitive for large demand change to avoid pricing error.
Claim assessment
Insure uses a 3-phase crowd-voting mechanic for claims assessment.
More info: Ascent Insure | Twitter | Telegram | Youtube
