During this session at D1Conf, Joel Martinez of HurricaneGuard and Alpen Sheth of Etherisc talked about how DAOs are suited for maintaining insurance products in a fair, transparent and inclusive way providing the common management functionality for underwriters, administrators, operators, and regulators across the value chain. They also shared how the HurricaneGuard team is exploring the Aragon’s DAO framework to build supporting infrastructure for their products that includes registries as well as upgrade, arbitration, and reporting schemes. These slides are courtesy of Joel Martinez, HurricaneGuard and Alpen Sheth, Etherisc

1. Evolution of
HurricaneGuard
Designing new kinds of collaborative and
decentralized insurance using HurricaneGuard and
AragonOS
D1Conf: Prague
October 29, 2018
Joel Martinez (Raincoat)
Alpen Sheth (Etherisc)

2. The problem

8. Designing a new kind of collaborative
and decentralized insurance

9. Turning Etherisc Flight Delay Insurance into Hurricane Insurance

10. Traditional
Insurance
Hurricane
Parametric
Insurance
Usually limited and constrained to
property damage.
Can take more than 6 months to
issue a payout.
Inconsistent and obscure pricing
and claims adjustment process.
Flexible coverage for a variety of risks.
Payouts issued within 24 to 72 hours.
Transparent policy and pricing
with a blockchain audit trail.

11. Polices are registered with a
latitude and longitude.
We monitor that location using
advanced technologies.
Within 24 hours of an event,
our system issues a payout.

12. HurricaneGuard original website (Spanish)

13. High-resolution wind intensity data (Philippines 2018)

14. The team forms a new company called “Raincoat” to impact more people

15. Raincoat + +

16. AragonOS Core Apps
Ownership Voting Finance

17. Voting
App
Finance
App
Example use case:
A payment has to go out to a contractor

18. AragonOS Core Apps
Insurance Apps (Proposed)
Ownership Voting Finance
Registry Policies Disputes

19. Registry Policies Disputes
Manage rules and
governance
related to policies and
triggers
Ability to view and
generate reports on
policies
Policy & payout disputes
management platform

20. Registry
Manage rules and governance
related to policies and triggers
Registry
Voting
App
Request change to a
policy rule or variable
Forwards action
to voting app
Vote is approved and
amendment is made

21. Unlocking payouts for incoming storms in a specific region. (for example, PR)
Updating a risk model or changing the provider endpoint.
Changing service fees, rewards, or other attributes in a policy.
Registry Example Use Cases

22. Registry Policies Disputes
Manage rules and
governance
related to policies and
triggers
Ability to view and
generate reports on
policies
Policy & payout disputes
management platform

23. Policies
Ability to view and
generate reports on
policies
Policies App
Administrator needs to view
details of a payout transaction
Report is generated

24. An administrator needs to view details about a policy or payout transaction.
Full listing of all policies and aggregate data necessary for reporting.
Policies Example Use Cases

25. Registry Policies Disputes
Manage rules and
governance
related to policies and
triggers
Ability to view and
generate reports on
policies
Policy & payout disputes
management platform

26. Disputes
Policy & payout disputes
management platform
Disputes
Voting
App
Insured or administrator flags a
policy or payout for review
Forwards action
to voting app
Vote is approved and
action is made
Token holders
vote on dispute

27. Discrepancy of trigger in comparison to reported event.
Example: A Cat 3 payout on a Cat 4 hurricane.
Insured did not receive payout but policy was triggered.
Policy needs to be revoked due to fraud or error.
Disputes Example Use Cases

28. Benefits of Insurance Aragon Apps
No need to migrate data.
One place to view all policy data and bookkeeping.
Multi-sig governance for changing key parameters and removal of
single points of failure.
Increased transparency for auditors and regulators.

29. Future of Smart Insurance
Increased democracy and control between stakeholders and insured.
DAO owned by the insured and insurance provider.
New models for incentives. For example, token / voting
on how to transfer excess pools.
TCRs for providers or collaborators.

30. Thank you!
Joel Martinez
joel@teamraincoat.com
Alpen Sheth
alpen@etherisc.com