Vernam’s Business Model & Token Allocation
We’re about to revolutionize insurance! Want to get involved? Learn more about the VRN token and what’s possible.
Vernam, a hot new ICO, is about to revolutionize the insurance industry in a way no one can ignore. By leveraging blockchain technology, this InsurTech will make insurance more transparent, efficient, and convenient for everyone involved — from big insurance companies to the end-client.
People seeking insurance will also benefit from much lower costs. Vernam will connect insurers and end-clients in a digital marketplace, thus effectively cutting out middlemen (read — brokers and agents) and their commissions.
The result? Better, faster, more convenient insurance. If that doesn’t whet your appetite, we don’t know what will!
Continue reading to find out what makes Vernam’s business model special, and how the token allocation will work.
Insurance Is in Dire Need of Simplification, Optimization, and Modernization
While innovative tech is being leveraged in many service sectors (most notably Finance with Fintech booming), the insurance industry is very visibly lagging behind.
The core insurance business model, which connects major insurance companies to end clients via middlemen like agents and brokers, hasn’t changed in centuries. And that’s a problem. This system is overrun by inefficiencies and lack of transparency, which affect customer experience and insurer’s bottom line at the same time.
Here are just a few of the issues plaguing the current insurance model:
1. High Commissions.
Agents and brokers are receiving up to 30% of policy premiums for services of relatively low value-add. Not only does this slow down the process, but adds a heavy extra cost to the end-client.
2. Lack of pricing transparency.
It’s nearly impossible for end-clients to gain visibility into real product pricing, meaning they can’t make confident, independent purchasing choices.
By skipping the intermediaries and by making pricing information openly available, Vernam will empower end-clients to make better decisions for themselves. This protects end-clients not only from self-interested broker advice (to take advantage of incentives from insurance companies, but also from inflated transaction/commission fees.
3. Lack of adequate customer history.
Storing personal data on the blockchain will introduce data integrity and unprecedented accessibility to the insurance industry.
This will speed up policy formation and underwriting processes immensely, playing a key role in improving efficiency & cost management in the industry as a whole. Plus, the industry’s ready for this — standardization of information and processes has already happened, it just hasn’t been transferred to the digital realm.
New tech makes this an apt time to take thing to the next level, so why don’t we?
The Vernam project will solve all of these issues by introducing blockchain decentralization and a much-needed model refresh. We’ll create a marketplace to connect major insurance companies with end-clients directly and digitally.
Insurers will benefit from data accessibility, allowing them greater precision in risk assessment. The insured will benefit from much lower insurance premiums and terms transparency. Insurance is clearly in for a big change, and we can’t wait to jump in and get to work.
And beyond injecting insurance with new tech, at Vernam, we’re also providing an innovative platform to totally shake the game. More on that below.
Token Allocation Plan
We will create 1 billion Vernam tokens, of which 50% will be available for purchase the token sale event. The rest of the tokens will be set aside for the Founders & Team, the Advisors, Bounty and Airdrop and for our bespoke crypto-insurance product’s reserve fund as well as a liquidity fund to cover operating costs.
New tokens will never be created & unsold tokens will be burned. The proceeds will go to developing the blockchain platform and implementing it in key markets, with a primary focus on 8 European countries with an eye towards global expansion soon thereafter.
The sales will have a soft cap of 40,000 tokens and a hard cap of 500,000 tokens.
Intended Use of VRN Tokens
To put it simply, with Vernam tokens, you can both (a) buy insurance from big insurance companies and (b) purchase our custom CryptoSafe product — an alternative to standard insurance, grounded in digital Safe Contracts.
Traditional insurance products (covering everything except life policies) will be available for all countries covered by participating insurance companies. CryptoSafe products will be available across all national borders.
Can it getter better than this? Certainly! By participating in the token sale and becoming an early adopter, you’re also guaranteeing yourself huge financial benefits.
The value of the Vernam token is instrincially set to grow due to the nature of the Vernam platform’s model. This means that using it for any of the possible transactions listed below, and/or liquidating it at any point, means you’ll have huge financial gain.
Buy Insurance from Big Insurance Companies with Regular Money
It’s easy to get started. You can buy conventional insurance products with fiat currency directly from big insurance companies you know. The fiat currency will be converted into VRN and used to acquire your insurance policy.
For this type of transaction, you will receive a reward in VRN tokens equal in value toa typical broker’s commission (up to 30% of your premium price). Instead of brokers getting the commission, you receive it!
Buy Insurance in VRN Tokens
Alternatively, you can buy conventional and crypto-based insurance products directly with VRN tokens.
The benefit? A 0% commission rate. This bonus effectively lowers your costs by up to 30% on regular insurance product rates.
If no claims have been raised and the CryptoSafe policy expires, clients will be rewarded a small amount of VRN tokens for having a clean record.
Reliable, Legally-Sound Insurance with Smart Contract Registries
The Vernam platform will create and use Insurance Registries to make sure your insurance products abide by national rules & regulations.
Vernam will use Smart Contracts as proof of insurance issuance and a transparent way to share the policy terms and details with the end-client. However, because different countries have different regulations, a slew of unique Smart Contracts will be created and managed.
All smart contracts available for any nation will be stored in the Registry Smart Contract for that nation. These will be whitelisted by the Worldwide Insurance Smart Contract Registry, allowing them to handle and operate (think sending back the commission) VRN tokens form the VRN
Token Pool. The Worldwide Insurance SC Registry’s main goal will be store all Registry Smart Contracts available for each nation, across all nations.
VRN Token Growth
All commission bonuses on the Vernam platform will be distributed in VRN tokens. For that to happen, the Vernam team will be buying VRN tokens from the market, meaning that every distribution will see a larger value VRN token. And by buying tokens from the participating exchanges in order to reward clients means that we will create a constant demand for the VRN token, too.
Our Token Sale will start soon. For the bounty hunters there’s a bounty running right now, and next week we will announce our airdrop and our whitelist dashboard.
At Vernam, we’ve beyond excited to start revolutionizing insurance. Will you join us and help make transparent, secure, automated insurance a reality?
Team Vernam
To find out more about the Vernam Project, download our whitepaper or visit ourwebsite. Follow us on Facebook and Twitter.
