Analysis of InsureX Token – Alternative Insurance Marketplace - Crush Crypto

Analysis of InsureX Token – Alternative Insurance Marketplace

Summary


Project Overview

What does the project do?

Based in London, InsureX’s goal is to create a new, alternative insurance marketplace that disrupts the current inefficiency system in the insurance industry.

The InsureX platform uses blockchain technology to streamline the process between buyers and sellers of insurance products. The platform also allows managing the downstream processes related to programs, policies, premiums and claims.

Target users of InsureX's platform include reinsurers, insurers, brokers, and general companies. 

Key features of InsureX’s platform:

List and market insurance products

Insurance products can be listed to a public audience or limited to a selected group of buyers only. A product listing includes the key characteristics and potentially targets specific regions and markets.

Transaction Execution

When the parties have agreed on the terms, a transaction is added to the distributed ledger. Because of the shared nature of blockchain, there is no need for a third party to verify and confirm the transaction. Participants in the transaction who have the right permissions will be able to see the same information in real-time.

Portfolio Management

InsureX’s portfolio functionality allows users to get an overview of the transactions executed and a summary view of key metrics. High-level information such as risk, premium, claims and performance information is available and can be visualized and exported.

Market Insights

InsureX can provide a detailed overview of market activity across regions, market sectors, exposures etc.

Introduction video of InsureX (video is 2:06 long):

How advanced is the project?

The project is just starting out. They have a local team developing the platform. However, they don’t have a prototype or MVP yet.

InsureX will use 70% of the ICO funding on team expansion, the majority of which will be on hiring software developers.

Here is the roadmap for the project:

Q2 - 2017:

  • R&D. Research into blockchain technology and insurance markets.
  • Prototype. The development team starts to work on a first prototype of the product.
  • Establish partnerships. Establish relationships with people from the insurance and blockchain industry.

Q3 - 2017:

  • Funding. Launching of the crowdsale campaign.
  • Team expansion. InsureX will expand the development team and hire experts in the insurance and development sectors.
  • MVP. Fully functional version of the platform with minimal functionality.

Q4 - 2017:

  • Sign up 10 clients. Having 10 clients using the platform in daily operation.
  • Extend downstream processes.
  • Service organization. Set up a support team to help clients.
  • General availability. Initial version available for all the client.

Q1 - 2018:

  • Go to market. Establish a sales and support organization.
  • Scale the platform. Ensure the platform can scale up.

How can token holders make money?

IXT serves as the currency for the InsureX platform and fuels all the activities that happen on the platform. Hence, the success of the token hinges on whether the platform can succeed and capture a significant market share in the insurance industry.

InsureX charges a commission on transactions being executed on the marketplace and an annual subscription for memberships. As the InsureX community grows, the transaction volumes will increase and new products and services will be available.

Each activity on the platform has an associated cost specified in IXT. Examples of token transactions include:

  • Transaction execution reward
  • Reward for providing data
  • Platform access
  • API licences

Of all fees collected by the platform, a portion is burnt. This introduces a predictable and effective reward structure for using IXT. The remainder is reinvested in the operation and growth of the platform.

Like What You Are Reading?

Sign up for our newsletter so you won't miss any ICO analysis on the next hidden gem!


Team

InsureX has a small team of 6, 3 of whom are co-founders. The co-founders have a strong background in their respective field.

Ingemar Svensson, Founder & CEO/CTO – Before founding InsureX, Ingemar was the CTO of Risk and Valuation at SunGard Asset Management. His experience ranges from managing large organizations to hands-on software development. Ingemar has spent 20 years building mission critical systems in various roles at Bank of America Merrill Lynch, Barclays Capital, Lehman Brothers and Mitsui Sumitomo Insurance.

Cristina Dolan, Co-founder & COO – Cristina is an MIT Media Lab alumna with over two decades of experience building software, content, and Internet based products and businesses. She was a co-founder of OneMain.com, which grew to be the 10th largest ISP and was acquired by Earthlink. She is a member of Forbes Technology Council and in 2016 was judge at the IBM Blockchain Hackathon.

Mikael Olofsson, Co-founder – Mikael has over 17 years of experience from the financial markets and start-up sector. Previous to founding InsureX, he was Co-founder of TikkR.co, an on-demand insurance platform. Before this, Mikael worked as Senior Equity Derivatives Broker and Commodities Broker in London, New York, Geneva and Paris.


Opportunities

  • The project has some strong team members and advisors, including the Chief Underwriter for General Re in Europe.
    • Gen Re is one of the largest insurance companies in the world with $5.6 billion of premium in 2016. It is also a member of the Berkshire Hathaway group of companies. If Gen Re becomes one of the first companies to use InsureX’s platform, it can be a lot easier for other insurance companies to follow suit.
  • There is a genuine need for decentralized platform to improve efficiency of the entire process in the insurance industry.
    • The insurance industry is currently manual, paper heavy, slow, and error-prone, which allows a lot of room for blockchain technology to disrupt the industry.
  • There is a network effect in play for this project – the bigger this platform is, the more attractive it is for other insurance companies to join the marketplace.
  • The project doesn’t really have a direct competitor now:
    • Etherisc can be complementary to InsureX’s platform.

Concerns

  • The project is nothing but an idea now – there is no completed product to show for. Even if everything goes according to plan, they won’t begin signing up clients until Q4 2017. You need to trust that the team will be able to deliver.
  • The CEO of InsureX is also listed as the founder of another startup, Finserve. It is unclear how he will allocate his time between the two ventures.

Conclusion

Overall, I like this ICO, both for short- and long-term potential. InsureX is tackling a big problem that needs to be fixed and if successful, token value can appreciate substantially.

Our thoughts of the tokens for short term and long term are as follows:

For short-term holding

Good because the project has some strong team members and advisors, which should make it easy to attract funding to fill the hard cap quickly. Note that tokens will be distributed 3-4 weeks after the end of token sale, which is longer than the average ICO.

For long-term holding

As mentioned above, the potential is great, but execution is key and it is unclear from what we see now.

If the team is able to deliver, I believe the InsureX platform can scale dramatically which is great for the long-term value of IXT. I see IXT as more of a high-risk-high-return type token.


For more information about the ICO, please visit the following links:

Website: http://www.insurex.co/

Whitepaper: http://www.insurex.co/wp-content/uploads/2017/05/insurex_whitepaper.pdf

Subreddit: https://www.reddit.com/r/insureX/

Bitcoin Talk page: https://bitcointalk.org/index.php?topic=1963974.0;all

Enjoyed What You've Read?

Sign up for our newsletter so you won't miss any ICO analysis on the next hidden gem!

  •  
    49
    Shares
  • 39
  •  
  •  
  •  
  • 10
  •  
  •  
  •  

Click Here to Leave a Comment Below