Decentralized Insurance Platform Development
Decentralized Insurance Platform Development is the process of developing a platform or dapp by leveraging the open-source decentralized finance (DeFi) Protocols. This decentralized insurance can eliminate the risks and challenges in the current traditional Insurance and increase the transparency, reliability, trust, security in the Insurance.
We Bitdeal - Leading DeFi Insurance Platform Development Company offers decentralized insurance solutions as both DeFi Insurance Platform Development and DeFi Insurance Dapps for providing seamless and easy Insurance solutions.
DeFi Insurance Platform Development Company
We, Bitdeal - DeFi Insurance Protocol Development Company tries to bring revolutions in the decentralized insurance space. We offer DeFi Insurance Protocol and DeFi Insurance Platform Development Services through which one can launch their own open-source DeFi Insurance Protocol to provide seamless insurance services with cent percent trust & transparency.
Features of our DeFi Insurance Platform or Protocol
Listed here are the features of our DeFi Insurance platform development
- Perfectly Audited Smart Contracts
- Integrated Cyber Security
- Highly Automated
- New Token Generation
- Ethereum Token Swapping
- Crypto Wallet Insurance
- Collateral Protection for Crypto backed Loans
- Complete Governance
- Claim Management Setup and more.
Why Choose Bitdeal for DeFi Insurance Platform Development?
We, the leading DeFi Development Company, offers A to Z services related to Decentralized Finance. Here are some valid reasons that replicate, choosing us for your DeFi Insurance Platform Development is the right choice.
- The pool of DeFi Experts
- Expertise in all verticals of DeFi
- Fine-tuned development services and solutions
- Transparency in Development Process
- Complete Security in products and personal belongings
- Lifetime support available 24X7
- Development of DeFi Insurance platform as both Website or Dapps
- Unbeatable DeFi Insurance Platform Development Solutions at affordable cost
- On-Time Delivery with expected outputs
- The firm that has been serving the best projects related to cryptocurrency, blockchain and DeFi & has happy clients across the globe.
I think we have delivered a short description about our DeFi Insurance Development Services. Here is a beginner's guide that explains the basics of decentralized insurance and how DeFi is transforming the traditional insurance sector in detail.
Decentralized Finance (DeFi) Insurance - A Complete Guide
One of the main sectors that contributes greater share in Global revenue and faces many challenges and issues in handling all the processes is the “Insurance Sector”.
The massive technology, blockchain improvise the financial sector as a whole. The new decentralized finance (DeFi) has also started to reshape the Insurance Sector.
Here let us look at the most important, but not discussed a lot, "Decentralized Insurance" which tends to eliminate the risks and threats in the Financial and Insurance Sector.
Before getting deep dive into the concept of Decentralized Insurance, let us have a look at Traditional Finance and its risks which makes a shift to DeFi based Insurance.
What is Traditional Insurance?
We all know Insurance is nothing but a contract that is being represented by a policy through which an individual or any entity gets financial protection or reimbursement against the losses from an Insurance Firm. These companies pool client's risks to make their payments more affordable for the insured.
These Traditional Insurance plans are considered as risk-free, it provides fixed returns in case of death or maturity of the terms. These cover terms, endowment, return, and safety.
In short, Insurance is termed as Pooling together Financial Resources. The Insurance policies work based on the 3 Ps namely
- Premiums - It implies the periodic payments we make
- The pooling of Money - The period payment that we make
- Payout - It is what we receive when there is risk and we have to bear financial cost.
There are many Insurance companies in the market with different kinds of insurance plans and all face many challenges in providing efficient insurance services for the end-users. Here are the major problems which many Insurance Companies face for years to provide the best solutions.
Challenges In Traditional Insurance
Lack of Trust
Trust is the main factor and the lack of trust is the one that makes people not bother about Insurance. Many see Insurance as Unnecessary expenses and many insurance firms shut their services because of financial challenges.
As there are many Insurance firms in the market, this is an intensive challenge for Insurers to survey in this competitive world. The people trust and believe the already existing insurance company and thus new firm walks on the thin line between failure and success.
In Insurance Business, the owner is wholly responsible for the issues occurring to their clients, and all the insurance firms that are mismanaged can not hide the faults or errors for a longer period. Incompetent Management can make the company cost a lot if they have poor communication with clients.
Involvement of Weak ManPower
Many Insurance Companies are run by Non-Professionals nowadays. It is assumed and considered that it doesn't require any specialized training and just some knowledge of monetary studies is enough to run a successful Insurance Firm.
When the economic state of any country gets down, all the insurance firms in that country will get affected and will be in the situation to raise the rates of interest on credit facilities provided by them. This will create a trouble situation for customers and also brings a bad name to the frim.
These are the biggest challenges with all the Insurance Companies prevailing in the market.
Decentralized Insurance/ DeFi Insurance
There have been uncountable smart contract hacking, cyber hacks, and attacks on exchange platforms which caused a huge loss in the investor funds. To prevent these losses the decentralized insurance came into the market and prevented many such consequences.
DeFi Insurance or Decentralized Finance in Insurance or Decentralized Insurance is a process of making the submit, claim and processing of insurance easily and within a short span of time.
In the decentralized finance (DeFi) market, Insurance plays a predominant role. Many investors of DeFi come from fiat-based financial systems used for Insurance. Insurance is an important element, whether it is FDIC or private provider.
For widespread acceptance, DeFi must provide a greater sense of security. This inturn provided by DeFi Insurance.
DeFi Insurance protects the investors and providers from hack or any other fraudulent activities.
Difference between Centralized Insurance and Decentralized Insurance
In Centralized Insurance Company, the process of Insurance occurs like :
- Assesses the risk
- Determines the premium
- Determines when the liability should be realized
- Assesses the occurrence of damages
- and finally offers the payments to the Insured Individuals.
In Decentralized Insurance, the process of claiming Insurance occurs in the following way :
- All those processing steps done by the centralized company in traditional insurance is done by smart contracts or computer codes in the decentralized insurance
- In the Decentralized Finance based Insurance Ecosystem, these processes are automated through the use of Blockchain Technology, Oracles, Smart Contracts and cryptocurrencies.
What DeFi Insurance offers the world and How it works?
DeFi Insurance works in the same way as the Traditional Insurance market does. This decentralized insurance protects people from financial losses due to hack, fraud, theft, or any unanticipated occurrence.
In DeFi Insurance,
- You Purchase a policy to cover specific situations
- If any of those situations occur and you suffer from financial loss, you can inform the concerned Insurance company which provides DeFi Insurance and get your claim compensation.
Example of such incident
If a DeFi platform that has DeFi Insurance gets hacked and the funds are compromised. This resulted in the loss of $1M for investors. Thus, Insurance companies would issue the payment to the exchange and which is then used to reimburse the affected investors.
Benefits of Decentralized Finance(DeFi) in Insurance Sector
Below are the benefits of decentralized insurance which tries to replace the old traditional centralized insurance.
- Complete Protection against DeFi Deposit
- Protection against Hedge and DeFi Risk
- Protection against crypto volatility and the flash crash
- Covers the prevention of technical and financial risk occurrence
- Immediate Claim Process
- Protection of funds from hacking
- Trustless claim
- Risk Assessment
- Easy and Immediate submit, claim, and process of payouts
- Complete safety and transparency in processing and more.
Key Advantages of DeFi Insurance
- Non Custodial
- Security against Collateral
- Highly Automated
- Lower Margin Requirements
- Easy & Time Saving Process and more.
Major Use-Cases of DeFi Insurance
Listed here are the main applications of decentralized insurance.
- Cryptocurrency Wallet Insurance
- Smart Contract Cover
- Collateral Protection for Crypto backed Loans
- Cryptocurrency Insurance
- Mutuals for the replacement of Insurance and more.
Popular DeFi Insurance Platform
Listed here are some of the popular DeFi Platforms that provide Insurance services for all its users.
- Nexus Mutual
- Cover Protocols and more.
These are the popular open-source DeFi Insurance protocols that are commonly used among people. You can also create your own DeFi Insurance Protocol with the help of Bitdeal’s DeFi Insurance Protocol Development Services.
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