The Concept

Cryptocurrency and Blockchain Insurance

The insurance industry is becoming increasingly competitive, having amassed a global revenue worth 7 trillion US dollars. Every segment of insurance is riddled with entrepreneurs looking to create new types of premiums, attracting new customers in a tightly-regulated economy. However, insurers are confronted with the evolution of both the online world and the customer.
In tandem with technological advances, the consumer has also grown, expectation-wise at least, demanding their rightful place at the crux of every business. Insurers know they need to innovate in order to remain competitive. Here is where we at Xsure come into play, by leveraging state of the art artificial intelligence (AI) and blockchain technologies, we find and apply novel ways to prevent and reduce loss.

Objective


Considering the accelerated evolution of AI and blockchain we propose to address a series of changes in the way insurance companies are currently conducting business. This will be achieved by developing real-time intelligent instruments that allow insurance providers to offer a more friendly approach as to how they communicate and build customer relations.
One objective of the Xsure platform is to position itself between the insurer and insuree, thus helping both parties find the most suitable solution, in a transparent, and privacy-oriented process.

Data Privacy and Machine Learning


Xsure has the client at the core of its model and is particularly concerned with the way data privacy is handled in the interaction between our users and insurance providers. Using decentralized technologies in a privacy oriented way, we can ensure that the user is the only person in charge of the data generated and how it is distributed (securely) throughout the blockchain.
We at Xsure have machine learning at the forefront of our platform as this makes up the engine that drives most of the innovation (besides blockchain) in our ecosystem. As speed and communication efficiency are some of our primary concerns, we have relied on machine learning, more specifically deep learning algorithms to automate most of the repetitive tasks that traditionally, insurance companies have relied on humans to solve. By applying state of the art DL to tasks such as customer registration and claim filing we have been able to drastically reduce operational time and improve communication between insurance providers and their customers.
Machine learning will be used to simplify a plethora of processes in the Xsure ecosystem. From identity recognition to loss prevention (and/or reduction), our mobile app will provide real-time notifications which are aimed at helping the user take informed decisions and stay in line with their sphere dynamics. Some of the deep learning techniques we will use include but are not limited to: facial recognition, voice analysis, emotion detection, lip reading and hand movement when holding the smartphone.
The XSR token will be the primary driving force behind the xsure decentralised ecosystem, which means that every transaction will have to be handled using XSR tokens. Every token transfer within our ecosystem will activate a smart contract, which will offer protection as long as the sphere dynamics (smart contract terms) are not breached.

What exactly is a smart contract?


According to Investopedia, smart contracts can be summed up as „self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.” It is normally the byproduct of third-party authorization. When making a transaction similar to the one offered by Xsure, one would be obliged to go to a lawyer, a notary or another middle-party and get it authorized. However, with our smart-contract-release system, the user receives their written agreement as soon as the first crypto transfer is made. In a nutshell, it is like dropping a coin in a vending machine: immediately after payment, the product is released.

Types of Smart Contracts


We do not intend to replace traditional insurance policies but to address terms in contracts that can be evaluated objectively and have implications on the overall clients scope. Our smart contract offering can be one of the following types:
  • Self fulfilling smart contract: immediate release of the funds in case of an claim that follows the rules embedded in the smart contract.
  • AI smart contracts: similar to self fulfilling smart contract but with the aid of ai algorithms that will do on-the-fly evaluations to ensure transparent and fair evaluation of the claim.
  • Consensus smart contracts: that can have subjective outcomes, based on the data provided by all parties involved in a claim.

Xsure Platform


The main elements of the Xsure platform can be summarised as:

1. Identity: this is a crucial component due to the fact that premiums are reflected in a users reputation on the platform. We use state of the art machine learning algorithms to establish and protect users identity.
2. Ownership: users will have to go through a proof of ownership phase before being allowed to insure a product or system. Associating devices and systems with users has the purpose of avoiding fraud in our ecosystem.

Platform Overview

3. Sphere selection: after the identification and/or ownership phases users can search for spheres to join manually or choose from the AI backed Xsure selection. On joining, users will have to closely inspect, and make sure they are in accordance with the governing terms of a sphere (sphere dynamics).
4. Real-time ecosystem - sphere users will be able to alter or drop certain aspects of the sphere, or, if the need arises, switch spheres. The sphere aspects that can be altered will be specified when joining a sphere and these include but are not limited to protection time, claim value, etc. For each operation there will be a fee in order to make sure there are no abuses.
Identity is a crucial component of our ecosistem and we will enable authentication through face and voice recognition. This helps us prevent duplicated identities and guarantee ownership within our ecosystem.

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