The mission of Etherisc is to build an open protocol for decentralized insurance applications, making it more efficient, enabling lower operational costs, providing greater transparency into the industry compared to traditional operations, and democratize access to reinsurance investments. Three demos have already been developed for three different insurance fields: Flight Delay DAPP, Social Insurance and Crop Insurance. And, especially interesting for the crypto space, Etherisc is also working on a multi-signature crypto wallet that can be insured.
Etherisc’s journey began when two founders Christoph and Stephan met in July 2016 discussing insurance on the blockchain. From there was born in just a few months our first version of a blockchain insurance application – the Flight Delay Dapp in September 2016.
They also applied the same model of parametric insurance to crop insurance based on weather data. They learned parametric insurance works well here because it originates a pre-established payout based on a triggering event, rather than waiting to evaluate and compensate for a specific loss. Their approach proved that smart contracts can reduce operational costs to a level that enables new markets, potentially bringing the benefits of insurance to millions of farmers in developing countries.
In November the same year, we joined hack.ether.camp, a virtual hackathon, to develop a decentralized market for insurance and reinsurance. They developed a method of using tokens to transfer and trade risks easily, bringing the concept of insurance-linked securities to the blockchain. This is the kind of tokenization of risks we expect companies to create on the platform. They finished the hackathon as the most-funded project, receiving more than 500,000 Hackergold and about 3,000 Ether from early supporters. You can read more about that in our 2016 whitepaper.
At the same time, Etherisc was also awarded as winner in the Blockchain startup contest, sharing the main prize with Status.
In January 2017, we demonstrated a prototype for social insurance on the blockchain as our submission for the Blockchain Virtual GovHack in UAE.
In April 2017, Etherisc won the Blockchain Oscar for “Most Innovative Blockchain Startup”. They also started working with EY to explore the regulatory and legal aspects of setting up and operating an insurance company on blockchain.
In June 2017, Etherisc joined the Enterprise Ethereum Alliance and started the Insurance Working Group there, which Stephan and Christoph chair.
In September 2017, Etherisc won a jury award at ICO Summit in Zürich, Switzerland in the pre-ICO start-up category.
In the final quarter of 2017, we sold more than a hundred flight-delay policies to travelers to the Devcon3 meeting in Cancun, the Blockchain Summit in Zug and the Token Summit in San Francisco.
In December 2017 we founded the Decentralized Insurance Foundation in Zug, Switzerland.
|“||Commercial entity (TGE+1 month): Found commercial entity, located in Zug, Switzerland, fully or partially owned by the DI Foundation
Commercial insurance entity (TGE+3 months): Found first commercial insurance entity in partnership with existing insurance company, to sell insurance into first target market
First insurance policy sold by own entity (TGE+3 months): DI Foundation owned entity sells first policy, fully licensed, fully regulated. Flight delay, B2C
Mobile app (TGE+3 months): Launch easy-to-use mobile app for flight delay insurance
Ramp up (Starting TGE+3 months): Ramp up primary insurance business in a European jurisdiction (the process usually takes 12-18-months)