The insurance industry is undergoing a radical change initiated by DeFi revolution. Decentralized protocols are challenging the monopolies in the insurance industry to give power back to users by bringing transparency and reducing costs.
On top of that, lack of competition in the insurance industry is the number one reason many people cannot afford insurance coverage. So, it was about time we see some improvements in the insurance industry.
In contrast to other traditional financial bodies, DeFi solutions are not controlled or regulated by a single central authority. The decentralized aspect is essential to a DeFi business model as centralized regulation can often limit the efficiency of a protocol — a centralized system is less transparent and has more control over users’ assets.
Decentralized protocols took the challenge and started exploring possibilities within the insurance industry.
Bridging the gap: decentralized applications
Such decentralized protocols develop decentralized applications to deliver their services to their users and provide them with the ease of use they need. A decentralized application or dApp is an application built on a decentralized network that combines a smart contract and a frontend user interface for convenience.
In their earlier versions, decentralized platforms were often associated with complicated interfaces, causing new users to shy away from interacting with them. dApps offer a fine-tuned user interface to make a smooth user experience possible, solving the accessibility issues. Users can easily purchase insurance coverages in a few clicks or taps.
Looking at the bigger picture, dApps allow people from all around the world to access a huge variety of insurance plans. Traditional insurance is heavily regulated and rarely
Another benefit dApps offer is faster claim processing. In traditional insurance, claim processing can take up to 6 months due to the involvement of multiple intermediaries whereas decentralized insurance protocols almost instantly process claims and compensate for damages in a timely manner.
DeFi space is a collaborative environment where its participants grow together through integrating their services with other DeFi protocols. Oracles- 3rd party services enabling blockchain smart contracts to access external, real-world data, help decentralized insurance providers adjust their prices accordingly so that users always get the most accurate offer.
CoverCompared is leading the frontline in decentralized revolution
CoverCompared takes the task of revolutionizing the insurance industry seriously. Using our dApp, users can quickly compare and buy health, travel, and electronic device protection in just a few clicks.
A DeFi insurance aggregator, CoverCompared offers a wide variety of insurance policies that can be purchased at affordable rates and with zero gas fees levied. We take pride in being a one-stop shop for users to get the most beneficial insurance coverage for their assets in a few clicks.
CoverCompared is the First DeFi insurance marketplace for the global crypto ecosystem. We aim to lower transactional and administrative costs of insurance policies and coverage while providing high-value, cost-effective insurance products bought using a host of cryptocurrencies.
Our platform will be connecting users with multinational insurance providers for all global insurance products such as crypto-related protection, health, life, and travel policies. The platform will include a frictionless insurance marketplace experience incorporating next-generation blockchain technology and tokenized incentives.