Etherisc, an open-source, decentralized insurance protocol, and ecosystem, together with the Blockchain Competence Center Mittweida (BCCM) at Mittweida University of Applied Sciences, today announced the launch of a joint project to develop a blockchain-based insurance prototype. This project aims to provide refined alternatives to traditional insurance policies by leveraging decentralized autonomous organizations (DAOs) in combination with artificial intelligence (AI) and machine learning to streamline and automate the process of insurance assessment and payment.
The Community Supported Insurance project aims to create a fair and sustainable model that can significantly reduce premiums and distribute profits regionally for charitable purposes. The parties said the use of blockchain technology will ensure transparency and fraud protection, while also providing a scalable solution that exists independent of national borders. Users can also participate in its development at the same time, helping to determine essential features as part of the community ethos of the project.
“We’re excited to be working with some of the brightest minds in the academic blockchain space,” Etherisc’s, co-founder of Protocol and Architecture Christoph Mussenbrock said. “Traditional insurance models are characterized by cumbersome claims and payout processes, low levels of transparency, conflicts of interest, and low payout amounts. Through this enterprise and academic partnership, we seek to overcome these challenges through the development of an entirely new blockchain insurance platform. This harbours immense potential for consumers in the region and beyond to benefit from truly innovative insurance products and policies.”
Etherisc and Mittweida University of Applied Sciences are collaborating on an initial proof-of-concept and pilot test, followed by the development of a final prototype for a fully-fledged decentralized insurance solution. The final prototype will incorporate technologies and frameworks such as DAOs, AI and machine learning and use these tools to reduce administrative costs, enable scalability for products, and provide transparency for consumers.
The use of a DAO enables direct customer participation in key product design and control decisions. At the same time, the project also includes an AI component to determine the risk of a claim occurring, aiding in better-designed policies and faster payout processes.
“Etherisc has an inspirational vision to make insurance fair and accessible through a decentralized open-source insurance protocol and we are excited to bring our expertise to bear in the development of a joint product,” Prof. Andreas Ittner, Head of BCCM at Mittweida University of Applied Sciences, explained. “Together with Etherisc, we are exploring methods to incorporate the latest technological developments and harness the potential of blockchain technology to create meaningful insurance solutions for the benefit of all consumers.”