How is CoverCompared different from other insurance platforms?
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CoverCompared is a technology platform built with the vision of providing the millions of under-served crypto users access to insurance protection by disrupting the gaps associated with traditional insurance coverage. We are able to gain access to historical data and valuable market insight which can help develop accurate and new products in collaboration with insurance providers.
P2P insurance is offered outside blockchain technology however, the products/services offered are geared for a non-crypto user(traditional products). However, a lot of claims assessment & operations costs still remains centralized in the process.
One of the main benefits of our platform is we are looking to launch niche products ( eg. Loss of NFT’s due to impermanent loss) which are geared & designed for crypto users and which are not “supported” by traditional insurance companies.
Separately, we are moving towards creating a model that is completely governed & managed by the community once there is enough data insight & experience of managing these different functions within the insurance product management.
Mass Market
In terms of First mover advantage, Nexus mutual is currently the only provider who has 1 product available and has done a great job in opening up the insurance vertical in crypto.
However, when comparing Nexus Mutual, their solution is focused on providing Smart Contract Insurance/Cover which is managed through community pools that is aimed towards the astute crypto user (You need to have a basic understanding of use Metamask & how community pools work to be able to transact on their platform ).
Here at CoverCompared we are targeting the mass-market of crypto users providing mass-market products ( i.e. exchange hack/exchange bankruptcy etc.) which are not being provided by any provider in our space.
Dual Insurance Market Place
Secondly, we are also building an insurance marketplace which is with traditional insurance providers who would be providing various other insurance products for crypto users which is unique to our platform.
We actually are also looking to onboard Nexus Mutual & other insurance protocols where we would create an insurance marketplace of decentralized providers in 1 place. So in essence, we will be providing complementary services within the crypto ecosystem with other insurance providers.
DAO Model
Under our P2P model initially, the Governance team (CoverCompared) would be working with insurance underwriters (pricing experts) when we build out our initial products. Once there is enough experience & data of claims. We would hand over the pricing function to the community. This is to ensure that the community gains the needed experience from experts to understand how risk assessment is done. Once the knowledge transfer is done, we would hand over all aspects of P2P insurance management to the community to make it work similar to a DAO. This ideally reduces the risk of faulty product development and loss of funds by risk liquidity providers as well.
