YoCoin is a bitcoin alternative that has just announced its intention to enter the insurance industry. Specifically, this infrastructure will deploy various features of blockchain technology including immutably recording financial transactions and smart contracts to issue an insurance policy based on an etherum distributed ledger smart contract. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
YoCoin is designed to support various types of policies, starting with life and health insurance policies. All the policy statistics including policy terms and claims history and will be immutably recorded on the YoCoin ledger.
How it Works:
- The user selects an insurance policy on the YoCoin platform, with both premiums and claims being paid with YoCoin. All insurance events are monitored, and corresponding data is fed into the smart contract by an oracle. Each insurance smart contract will have one or more oracles associated with it.
- In the case of a claim, each smart contract will have one or more oracles associated with it assuring automatic triggering of claims when the policy terms are met.
Ultimately, this YoCoin effort reflects the gradual shift towards smart contracts and digital currencies such as Bitcoin and Litecoin that are fuelling the rate at which the insurance industry is embracing blockchain based methodologies, slowly but surely.
We feel that, with the growth in adoption of IoT devices, there will be tighter integration of real-time access to data in the insurance industry, culminating in the use of smart contract based insurance policies that are free from the involvement of agents, call centres and loss adjusters.