EXAMPLE OF A P2P RISK SHARING SCHEME WITH IMPACT

There is an insurance problem for self-employed persons in the Netherlands. There is no affordable insurance for them to solve their disability risk. They want full insurance at good conditions and low costs during their working life. Solution: p2p risk-sharing until retirement on mutually agreed terms and at least 60% lower premium.

COMPARISON OF TRADITIONAL DISABILITY INSURANCE AND P2P RISK SHARING

Traditional DI

Age insured: 50 years
Profession: Crane operator
Disability: >25%
Payment pm at 100%: €2,000.00
Indexing: 2%
Waiting time: 30 days
Premium due until cancellation

Premium per month:

50 Years: €393.57
51 Years: €401.83
52 Years: €409.35
53 Years: €417.02
54 Years: €424.85
55 Years: €432.82
56 Years: €440.96
57 Years: €449.26
58 Years: 
€457.73
59 Years: €466.37
60 Years: €475.18
61 Years: €484.16
62 Years: €493.33
63 Years: €502.68
64 Years: €512.21
65 Years: €521.94
66 Years: €531.86
67 Years: €542.15

P2P Risk Sharing

Age insured: 50 years
Profession: All professions
Disability: >25%
Payment pm at >80%: €2,000.00
Indexing: Inflation
Waiting period: 30 days
Premium due until cancellation

Premium per month at average 4%:

50 Years: €104.00
51 Years: €107.00
52 Years: €110.00
53 Years: €113.00
54 Years: €116.00
55 Years: €119.00
56 Years: €122.00
57 Years: €125.00
58 Years: €128.00
59 Years: €131.00
60 Years: €134.00
61 Years: €137.00
62 Years: €140.00
63 Years: €143.00
64 Years: €146.00
65 Years: €149.00
66 Years: €152.00
67 Years: €155.00

P2P Risk Sharing

Age insured: 18 years
Profession: All professions
Disability: >25%
Payment pm at >80%: €2,000.00
Indexing: Inflation
Waiting time: 30 days
Premium due until cancellation

Premium per month at average 4%:

18 Years: €5.00
Increasing by €3.00 per year

Platform of P2P Risk Sharing Technology


MARKET SITUATION
Absenteeism due to illness is invariably the lowest among the self-employed, namely 1.7 percent. In medium-sized companies, absenteeism is 3.8 percent. Large companies (with 100 employees or more) have an absenteeism rate of 5.2 percent. However, for the self-employed, there is no affordable insurance to solve their disability risk. They want full insurance at good conditions and low costs during their working life. 

BACK TO BASIC
There are millions and millions of self-employed people in the labor market without disability insurance due to the excessively high premiums of traditional insurers. Solution: P2P risk-sharing until retirement date on mutually agreed terms and 60% lower premium. Absenteeism due to illness among self-employed is on average below 2%. Assume an absenteeism of average 4% and a benefit of €2,000.00 per incapacitated person per month. Then the monthly payments per 100 risk-sharing self-employed are €8,000.00 A premium of €80.00 per person per month. Age dependent; €5.00 for an 18 year old, increasing by €3.00 per year to €155.00 per month for a 67 year old risk-sharing self-employed person.

NO CONFLICT OF INTEREST
P2P Risk Sharing and Blockchain eliminate conflicts like those that occur in traditional insurance structures where the interests of insurers and insured are not aligned. In traditional insurance, the insurer determines the terms and conditions of insurance. And premiums that do not convert into claims are used for costs, profits and taxes. In P2P Risk Sharing, no physical insurer or reinsurer is involved, so there is no conflict of interest. Only the interests of the risk-sharing clients are served where premiums are used exclusively for claims.





Burg. Kolfschotenstraat 4    Tel. +31653374097
5616 DD Eindhoven            platform@riskshare.nl


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