Vernam: The World’s First 0% Commission Insurance on Blockchain

The project aims to harness blockchain technology to root out inefficiencies in the insurance industry.

Insurance, one of the largest global industries, has always been among the most stable markets. People still tend to seek security for their lives and property regardless of how the economy is doing. In 2016, the global insurance market was estimated at $4.73 trillion, and it keeps growing. But for all its reach and significance, the industry still operates on a conservative business model that has remained practically unchanged for decades, and its technologies have become outdated.

Top insurance companies still rely on brokers and agents acting as intermediaries that bring insurance products to end customers and receive a commission for doing it. The issue is that these brokers command unreasonably high commissions, sometimes up to 30%. At the same time, the added value of the services they provide is rather low. Apart from the size of broker commissions, there is also a problem with their pricing policies transparency, which results in an unfairly high cost for end customers.

To address the current inefficiencies in this conservative industry, Vernam aims to innovate and digitalize it with the help of cutting-edge blockchain technology. Its use will enable Vernam to create a streamlined ecosystem that connects directly online customers and insurance companies, thus eliminating the need for intermediaries.  Moreover, the blockchain solution will lower the cost of insurance services and provide a high level of pricing transparency and data integrity, preventing manipulation or forgeries.

The decentralized platform designed by Vernam is a transparent and secure online marketplace where customers will be able to choose conventional insurance products without the need to pay broker commissions. Instead, they will be receiving it themselves!

In return for using the Vernam network and purchasing digital insurance products through the platform, customers will be rewarded with Vernam tokens (VRN), the size of the cashback equal to the average 20% broker commission. Meanwhile, adequate clients’ history will allow insurance providers to optimize their risk calculations. As a result, the business will become more efficient and friendly for all parties involved.

Besides, Vernam will introduce a proprietary insurance crypto product called CryptoSafe, which will be free of commission and available exclusively to registered platform users. Every client will be able to purchase this smart contract, which guarantees the client will be compensated with Vernam Tokens when a defined set of events occurs.

Vernam ICO details

The project will raise funds by offering its Ethereum-based ERC20 utility VRN tokens. They will be used for purchasing conventional and crypto insurance products on the Vernam platform and also as rewards and incentives for platform users.

The project developers have set a hard cap of 500 million VRN. The token sale started on May 15 and is scheduled to close on July 15, 2018, or when the hard cap is reached, whichever happens first. The total supply of VRN tokens is limited to 1 billion, with 500 million (50%) of them available for sale. Please note that all unsold tokens will be burned.

If you are interested in this ICO, visit the official website for additional information or subscribe to project updates on Twitter and Telegram.