Web3 products
Some insurers have already embraced Web 3 technologies and there are already a few Web 3 insurance products in the market.
Crypto-currency wallet insurance: This covers protection against theft of crypto-currency during a cyber-attack.
Collateral protection for crypto-backed loans: In crypto-backed financing where crypto holdings are used as collateral when a loan is processed, the borrower must pledge collateral with a greater value than the amount borrowed. Hence, there is a need for providing coverage to the collateral pledged by the borrower. Collateral protection coverage reduces the risk for the borrower and lender involved.
Smart contract cover: This coverage helps the insurer in the event of a smart contract getting hacked and funds being fraudulently moved from one account to another. For example, the funds might get moved to an email address that doesn’t belong to the original investor. So, this type of coverage protects against any permanent loss.
Data monetization for on-chain insurance products: Web3 insurance products require high-quality, trusted sources of data for any type of smart contract. This is to ensure that the underlying infrastructure is secured from any threat. Any data provider can monetize Web APIs and sell the data to blockchain applications.
Leveraging the Web3 features listed above, insurers can optimize their operations, provide efficient services, and build new avenues of growth.
