Uno Re’s Guide To the Perfect Insurer
DeFi insurance is establishing its place under the spotlight as the smart contract hack threat gets more serious. The number of days where DeFi users wake up to concerning news of lost crypto assets due to smart contract bug exploits is increasing, concerningly.
DeFi, in its very nature, is extremely flexible and quick to produce solutions to problems. This is why the development of DeFi insurance didn’t take much time. Several platforms addressed the need for insurance within DeFi space and introduced coverage services.
So, there are several options for users that seek insurance coverage for their crypto-assets. But could that be an illusion of choice rather than an actual abundance of options? How to distinguish a competent insurer from an average one?
There are several qualities a good DeFi insurer must possess. Below, we will discuss each one in detail.
Total Locked Value (TVL)?is a good indicator of an insurer’s insurance capacity. DeFi insurance relies on staking pools to gather the funds necessary to provide coverage to its clients. At the time of writing, Uno Re has a TVL of $2.48 m worth of assets, enabling an insurance capacity of $7.97 m.
Uno Re’s unique pooling model consists of an SSIP (Single-Sided Insurance Pool)- the main pool that gives Uno Re its insurance capacity, and an SSRP (Single-Sided Reinsurance Pool)- protecting SSIP against black swan events.
A strong team?of seasoned professionals is a must in the insurance industry. In DeFi insurance, blockchain experience is also crucial. Uno Re is being governed by a team of multiple award-winning professionals with a combined experience of over 60 years. Our advisors worked with global insurance giants and they have the experience and skills to help DeFi insurance thrive.
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Transparency?is another quality a good insurer must possess. Unlike traditional insurance, DeFi insurance enables users to know for what their funds are being used. Uno Re’s staking system enables its users to know precisely where their assets are and for what they will be used, including the policies that consist of various specialised insurance covers Uno Re offers, such as covers for NFTs and digital assets in the metaverse, bridge protection, and more — in other words, Uno Re offers transparent staking.
And last but not least, the?easy claim-filing process?is another must-have for DeFi insurers. An insurance claim is a formal request to an insurance company asking for a payment based on the terms of the insurance policy. Traditional insurance lacks the agility to provide instant claim payouts. DeFi insurance is always one step ahead thanks to its decentralised structure.
Uno Re’s dApp enables users to easily file a claim and receive payouts almost instantly thanks to Claim Assessors. Claim Assessors are the main participants of the Uno Re insurance and reinsurance pools as they pertain to the processes of claims. Hence, Uno Re can compensate for losses suffered due to smart contract exploits in a short time.
When choosing an insurer, users should not have any doubts regarding the qualities listed above. Instead of prioritizing certain qualities above others, users should have peace of mind when selecting an insurer, knowing the protocol has what it takes to be a reliable insurance provider. Uno Re takes pride in its well-established ecosystem working like clockwork with all its components complementing each other.
About Uno Re
Uno Re is the world’s first decentralised insurance and reinsurance platform, allowing the community to invest and trade in ‘risk’ and receive sizable returns on their investments in one of the safest asset classes in the world. The platform will break barriers to entry for the retail investor by doing away with the historic pre-requisite of absurdly high capital generally needed to invest into the market while also introducing much-needed transparency into the industry as a whole. Uno Re will also allow the community to propose innovative insurance products to the space, thus propelling a new generation of Insurtech companies powered by the Uno Re ecosystem.