The future of insurance is communities

We’ll say it again…The Future of Insurance is communities.

It’s no secret that the insurance industry is in the midst of a crisis,.. Climate change, cost of living crisis, growth on healthcare demand, the impact from Covid, raises on premiums,…and so on.

What can we do?

Well, we can create community-based insurance solutions. It’s in fact not something new and innovative.

In Asian cultures, people have been supporting their close community of friends and family for years. They put money into common funds and when and if one of them needs it, they can take a portion off it.

In The Netherlands, they’ve created “bread funds” or Broodfund as they’re known there. In the most basic terms, a bread fund is created when a group of self employed people make monthly payments into a fund which can then provide a basic income for anyone in the group who becomes too ill to work. The first bread fund was created in 2016 as the Dutch government abolished sick pay for self employed people.

Ever since, the UK has also created Bread Funds, with the aim of supporting self-employed people and freelancers in the case they are unable to work.

How does that sound? Would you be a part of it?

These are examples of small scale community insurances, but with smart contracts, and therefore bigger communities, these could become the norm

You tell us, is community based insurance the future?