Vernam ICO proposes 0% commission insurance using blockchain tech

Company will open purchases of its VRN token – that will power a decentralised P-2-P insurance marketplace – on May 15th.

A new blockchain-driven insurance platform is promising to connect insurers directly with customers, breaking down the need for brokers – and saving money in to process. Indeed, its creator Vernam is saying that “up to 30% of the amounts previously paid to brokers would be channeled back to clients and given back as cashback in the form of Vernam Tokens (VRN)”. These tokens can be exchanged into fiat currency or used on the system in the future.

It is not the first time we’ve seen blockchain and AI technology applied in the insurance sector – which has long been touted as of the possible long-term applications of distributed ledgers. For example, we covered Rega’s plan to crowdsource insurance from a community of token holders in the not-too-distant past.

Vernam’s big innovation, however, is the introduction of  CryptoSafe – a smart contract-driven mechanism that guarantees compensation to the insured should a pre-defined event, or series of events, occur.

Speaking during an investor briefing, the CEO and Co-Founder Roman Angelov said: “We are convinced that our product offering will benefit both insurance players and the consumers. There are lots of opportunities that both can leverage. We are moving towards an industry that is shifting from intuition based policy pricing to one that is based on data. Blockchain technology will allow the players to offer insurance products and assessment on an individual capacity thereby minimizing risk and increasing efficiency.”

The Vernam ICO pre-sale for VRN will begin on May 15th, running until July 15th and more information can be found at  Early investors will also be able to claim up to 40% bonus. The ICO, we’re told, has already reached its soft cap target of raising 40 million VRN.

You can read its Whitepaper here.