The insurance industry is days away from a technological and business milestone. The Aigang Network’s token sale on November 15th brings together Internet of Things devices and Autonomous Insurance, promising self-paying insurance claims on a subset of the 55 billion IoT products forecast to be produced over the next eight years. Aigang has created Proof of Concept products on the Ethereum blockchain that detect faults or failure dates (initially in mobile phones) and pay insurance claims to the user without the requirement for any human oversight. In other words, we are creating an insurance DAO; a Distributed Autonomous Organisation.
The Aigang insurance software, which includes all policy details, can be bundled with a device so that it is active when started-up or opted-in during configuration. The software detects imminent failure of components and triggers a payment automatically if insurance conditions are met.
Candidates for this solution include phones, drones, fitness trackers, gaming consoles, home electronics, white goods, cameras and watches.
Autonomous Insurance is not limited to completely automated use cases, since Aigang’s protocols provide for aspects of a product’s insurance policy to be passed off to conventional reinsurers. In other words, some claims for your self-driving car might require manual oversight, some may be automatically dealt with. This enlarges the universe of products that can access Aigang’s insurance.
The Proof of Concept app, on the Ethereum Testnet platform, has more than 7000 downloads and around 2000 smart insurance contracts have been issued. Aigang has deployed smart contracts that issue policies, conduct risk assessment and process claims. It has also deployed smart contracts that perform insurance profit calculations, create reserves and tokenise the insurance risk pool. The protocol architecture is able to integrate other insurance products.
There are a number of other innovative aspects to the Aigang Network, including the use of prediction markets to evaluate the viability of insurance products. Aigang are incentivising insurance industry experts and business analysts to participate in these prediction markets by rewarding successful predictions with status and tokens.
Internet connectivity is becoming the default for new products. All these devices, vehicles, appliances and systems are potentially insurable. Automating insurance will drive down policy costs, increase the diversity of insurance products and disintermediate inefficient insurers. Aigang is positioned to be a leading player in this space.
Advisors to the project include Bok Khoo (blockchain) and Niv Calderon (IoT). The team comprises longstanding insurance industry executives based in Europe and Asia, as well as developers with experience on all relevant technology platforms.
Aigang has already raised 10% of its total target funding. 60% of funds raised in the token sale will be applied to protocol development, with 15% allocated to security, 15% to operations and marketing, and 10% to legal and consulting expenses.
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