The global insurance industry was estimated to be $4.73 trillion in 2016. Despite commanding such a huge value, the industry is still dominated by brokers and intermediates. The industry still uses outdated technology and management model.
Ultimately, the consumers bear the price for the inefficiencies that exist. Vernam aims to resolve the issues that plague the insurance industry.
Vernam is planning to build a decentralized platform, based on blockchain technology, connecting various stakeholders in the insurance industry – customers, brokers, and insurance companies. The company aims to make the insurance process less costly, fully transparent and much more convenient.
Vernam questions the need to pay 30% to insurances brokers who add very little value to an insurance product. The blockchain company has proposed a system by which the end user will receive the commission, which is usually paid to brokers, and at the same time deal directly with the insurer.
Instead of going through a broker, a customer can use Vernam’s platform to purchase a suitable insurance product and bag the 20%-30% commission as Vernam (VRN) tokens, which can be sold in any of the exchanges or used for purchasing any other insurance or crypto products. Furthermore, Vernam is planning to offer a unique product named “Cryptosafe”. It is a type of a smart contract, which guarantees a user with a certain amount of VRN, when a defined set of events occurs.
Vernam platform users will be able to make conventional insurance through our own network of brokers, including Vernam company itself, and/or to purchase “CryptoSafe”, the newest and most innovative blockchain based insurance product that Vernam will introduce.
The use of a shared ledger will prevent any possibility for data manipulation, increasing transparency and minimizing transaction costs.
The project aims to raise funds by offering Ethereum-based ERC20 (utility) tokens (VRN). As much as 1 billion Vernam tokens will be created and 50% will be sold at the token sale event. Unsold tokens will be burned. The proceeds will be used to develop the blockchain platform and launch it in multiple markets, depending on the funds raised. The team behind Vernam has set a hard cap of 500 million VRN.
In mid-may, the token sale was launched. It will end on July 15, 2018 or when the hardcap is reached, whichever is the earliest.