NexusMutual calls itself a “peer-to-peer discretionary mutual entity on the Ethereum blockchain”.

According to their founder, they plan to bring the mutual ethos back to insurance by creating aligned incentives through smart contract code on the Ethereum blockchain.

I had the chance to have a quick interview with their founder Hugh Karp:

Hugh Karp — Founder, Insurance Professional

Why do people in the insurance industry need to pay attention to Blockchain?

How will Blockchain change the insurance industry?

The insurance industry has many parties, a long value chain and spends an unbelievable amount of time reconciling between parties so there is clear common ground here.

What do you think is necessary for Blockchain to be adopted in the insurance industry? What do you see as the most promising use cases for Blockchain in insurance?

On the decentralised side, this is less about adoption by the current industry as it’s more of a potential threat. I think it is a credible threat but it will take a while to establish itself. Decentralised solutions actually have a great opportunity to address underserved markets that the existing industry has difficulty accessing. As an example, in countries where regulation is not as robust the trust layer that blockchain provides has more value to the consumer than in a highly regulated market where trust is adequately provided by layers of regulation and law. Microinsurance is a great opportunity here, probably using parametric triggers to start with.

Please tell us something about Nexus Mutual. What is the idea behind it and what is your vision? What technologies are you using?

On the product side, while our platform is built to be product agnostic we will start with a single product, Smart Contract Cover. This would pay-out claims if there has been “unintended code usage” on any Ethereum smart contract. Think of the The DAO hack and the two Parity multi-sig wallet issues as events that would be covered. We believe Smart Contract Security is a critical issue for the Ethereum community and while lots of focus on security audits and formal verification is great, code can never be guaranteed 100% secure. We are aiming to provide a safety net for that risk.

In terms of technology we are firmly building on public Ethereum, the developer community is second to none and while the technology needs to develop we are confident the right people are working on it and can deliver.

Decentralised solutions actually have a great opportunity to address underserved markets that the existing industry has difficulty accessing.

What is your advice for companies wanting to start with blockchain?

What are your favourite resources/websites to stay on top of innovation things in the insurance space?

Read more about NexusMutual on their website:


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Widgetlabs

Focused on awesome Insurance/InsurTech technology & helping…

Julian Hillebrand

Written by

Blockchain Nerd 🚀Demand Manager @COCUS AGㅣHelping companies build the Web 3.0 with Blockchain technology

Widgetlabs

Focused on awesome Insurance/InsurTech technology & helping start-ups to deliver.

Julian Hillebrand

Written by

Blockchain Nerd 🚀Demand Manager @COCUS AGㅣHelping companies build the Web 3.0 with Blockchain technology

Widgetlabs

Focused on awesome Insurance/InsurTech technology & helping start-ups to deliver.

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