In traditional insurance, we purchase a policy from insurance companies to transfer our risk to them. The insurance companies then spread the risk out among the policyholders. This begets the question of why we cannot come together ourselves and spread our risks out without having to go through an insurance company.
For many years, it has not been possible due to the issues of coordination and trust.
Without a centralised institution, it is tough for people to congregate and come to the consensus that they share their risks with one another. Lacking the necessary expertise, people are also likely to face difficulties in deciding among themselves what is the type of coverage they need and the amount of payout necessary to ensure that they are well insured.
Even if an agreement is reached, how can these people be sure that everyone will pay in a timely manner? Moreover, who is going to collect the payments? Can this person be trusted? In Bandboo’s consultations with the public, concerns arising from tontines of yesteryear are often raised. These community microcredit schemes common during modern Singapore’s founding years were often marred by tontine heads who collect the funds running away with the community’s money.
Bandboo’s solution
With Bandboo’s insurance technology platform, we overcome these twin problems of coordination and trust through our proprietary platform. We crunch the data for you to arrive at the figures you need to pay. We also link the payments from you directly into a trust account, whereby a third party will ensure that the funds can only be withdrawn for their intended purposes. Lastly, our blockchain technology allows us to achieve a degree of transparency unheard of in the insurance industry. Any member can view the blockchain ledger online to track all payments and payouts.
Insurance powered by communities
Bandboo’s insurance technology platform enables everyone to come together and insure one another. By doing away with the need to go to an insurance company, you can now enjoy insurance at the lowest possible cost.