Vernam team answering frequently asked questions: Part 1 — The Product
Anyway the $4.73 trillion market of risk management needs a change as a move away from pre-Internet paperwork and the first days of the Vernam project prove that people are ready to embrace the new era of insurance process on the blockchain.
Our social media channels are growing exponentially and people engage in conversations about the future of insurance.
During the last two months we received tons of questions regarding the Vernam project, so we decided to put together the most asked ones and write a post about them. We have almost 50 questions people ask most often, so we decided to split them in separate posts.
We’ll start with the product-related questions:
What is Vernam?
Vernam is a project aiming to introduce serious digitalization in the insurance sector. It is an online platform which will allow the end clients to inquire, receive and contract the most suitable insurance proposal for them through a user friendly interface and without the need of a third party broker, which will dramatically lower the cost of insurance services while making the business way more efficient not only for the clients, but for the insurance providers as well.
How does it work?
Technologically, Vernam is decentralized online platform, based on blockchain technology which creates the right conditions for clients and insurance providers to do business in an easy, safe and cost-efficient way. Besides the platform itself, a proprietary off-chain market place will use the Vernam token (VRN) — an Ethereum-based ERC 20 standard crypto token — to take full advantage of the platform’s functionality.
In other words, when a contract between a client and an insurance provider is signed on Vernam, it will be denominated in VRN. Since there is no broker mediation, the standard broker’s commission (15–25%) will be awarded to the client in the form of VRN. The Client can choose to exchange the VRN for fiat money or to keep it and later purchase a new insurance with a significant discount.
The system will offer special type of smart contracts, guaranteeing that when a defined set of events occurs, the client will automatically be compensated with a certain amount of VRN’s. This will make Vernam the game changer who dared to digitalize the insurance market! Vernam will also be the safest and the cheapest tool to purchase insurance.
Given the lack of transparency and the resulting misinformation, or loss of trust between end customers, insurance providers, and intermediaries, such as brokers and agents, we are confident that the decentralized nature of the blockchain technology will help to recover the lost balance and will provide a platform, driven by shared data and mutual trust, while at the same time the clients may benefit from reducing administrative cost of the insurance products.
How do you use Blockchain in your product?
The blockchain sub-system of Vernam, is system of inter-related smart contracts.
It has two main purposes:
• Create Insurance Smart Contracts as a proof of the issuance of insurance and its details
• Transfer a commission back in the form of VRN Tokens
Read detailed description of the implementation of blockchain on the Vernam platform in our whitepaper.
What actual problems does Vernam solve?
Through our concept, Vernam will solve one of the hardest issues to tackle in the current state of the industry — the loss of trust between end customers, insurance providers and intermediaries (brokers and agents), resulting from the speculative value of the middlemen’s services (for which they receive generous commissions)and the “hidden” information regarding the exact percentage offered to them as a reward by the different insurers — information which reveals why a client might be offered to accept an insurance proposal which does not suits best his needs.
When the middleman is out of the game, his commission (an average of 15–20% of the overall insurance cost) will be returned to the client in the form of Vernam tokens as an incentive for using the platform. This means Insurance will become much cheaper and the clients will always get the best proposal for them.
In this way Vernam will also eliminate the possibility for “bad quality” insurance products to be spread only because the insurer is offering high commissions to the agents. The insurance market will become absolutely fair as the middle men’s self interest will not play a role and the insurers will not be able to exploit it for the mass distribution of speculative proposals. In a fair market the real quality offers will always win.
Vernam’s mission is to transform the insurance market into a transparent, fair and honest space of integrity and high social values!
Why do you need a token?
The VRN token will incentivize the usage of the platform. It will also be used for payments in our smart contracts to create a tamper-free, perpetual record of clients’ insurance history, which can be used by insurers to optimize risk assessment.
Do you have a product already?
We are working on our beta version, which is scheduled for launch by the end of 2018.
Is there a prototype available?
Yes, there is an alpha prototype available online.
Where is your Github?
Who is behind Vernam?
Some of the best specialists in the sector with tens of years of experience in blockchain, insurance and business development. We have managed to get together a team of pro’s, many of them world-renowned advisors and each of them highly experienced in his specialty. You can see the full list of team members on our website.
Does your team have the required experience to accomplish the goals on the roadmap?
At least 50% of the reason to believe in Vernam and to initiate the project has to do with the team. We have gathered a group of experienced professionals who can truly revolutionize the insurance sector and each segment from the roadmap is our realistic expectation in terms of Vernam’s development. We are here to create a long-lasting change which will be the next evolutionary step for global insurance!
At Vernam, we’ve beyond excited to start revolutionizing insurance. Will you join us and help make transparent, secure, automated insurance a reality?