What Does a Benefits Package really mean?
If you’ve read our whitepaper, you know that we really started this project as a way to lessen the impact of hidden insurance costs on the policyholder. We’re also prioritizing paying back unused benefit seeding funds, while still providing payouts if certain waiting periods are met and the community approves your request. We’re staying away from calling this full blown insurance because:
- The industry is highly regulated and varies country to country. This makes it harder to standardize our offerings.
- The legal ramifications of the above
So by going the route of covering “other expenses” relating to life events, that could really mean anything the community deems worthy. Is your dog sick and require surgery? What’s to stop the community from funding your cause should you submit a request for a payout? Nothing. In this regard, while we originally saw this as a way to ease into the ancillary insurance market, the community may see this very differently.
Once the system is live, if you have a valid policy tied to your address, you will get a vote in deciding payout outcomes. We are considering multiple strategies to ensure fairness:
- Weighting votes based on how big the voter’s benefits package is
- Rather than vote just yes/no — request the policyholder submit more information before a claim could be made
Community involvement is the cornerstone of UMC.
If you follow the news in the USA, you know that health care is a hot button topic here. What should be covered? Who should pay for it? How can we get costs lower? It’s a very partisan issue and very little is being agreed on. I was at dinner tonight with a friend. We both work for Microsoft and get very good health insurance (by USA standards) but, as you can imagine, some things either aren’t covered or require an up-front payment before insurance will cover anything. His knee is bothering him from weightlifting, but he’s reluctant to go to the doctor just to avoid the cost. That’s not why insurance exists — for you to try to avoid using it. It’s the same thing as trying to avoid making a claim after a car crash to avoid your premiums from rising. At this point, why do you have insurance? Is it there to serve you, or the insurance company? Sadly, the answer is leaning more and more towards the latter, all over the world for all different types of insurance. The scenario my friend is in is exactly what Umbrella Coin was made for. Don’t be held hostage.
This is really going to be insurance by the people, for the people. Float management is ultimately up to them. Our team is actively managing how to avoid fund depletion for the initial release, and we will probably continue tweaking the system/algorithm until a nice equilibrium is reached, but we don’t control payouts. We have our vision of how we would like this to be used, but how it is ultimately used is up to the people. And that is the beauty of democracy and “insurance.” We let you ultimately decide what is and is not important enough to cover/reimburse. Just know that your peers will judge your requests the same way you judge theirs. With Umbrella Coin, we’re going to provide “coverage.” And we’re excited to see where the community drives this.