Nexus Mutual: The Basics
The concept of insurance comes from communities in the past who pooled their resources to protect each other from the risks they all faced. It works better the more people are in the pool as the numbers become more reliable. But this method isn’t scalable because it is a trust-based system and the network of individuals trusted by everyone in the pool only extends so far. Hence traditional insurance companies emerged.
When Ethereum and smart contracts came along we realised we could apply our insurance industry knowledge to our passion for decentralised technology. We realised we could build a mutual on a platform where individuals only need to trust the system, not everyone in it.
Specifically, we could see a solution to the problem of agency—where an insurer looks after customers' money on their behalf. We also saw the opportunity to make significant cost savings compared to the traditional insurance model. As we’re already in the UK, we have the perfect base to build out this concept due to the existing law around mutuality.
The aim is to provide our members with more simple, transparent, accessible, and affordable financial protection against their risks.
Nexus Mutual is a decentralised alternative to insurance. We’ve used blockchain technology to create a risk sharing pool in the form of a mutual to return the power of insurance to the people. The platform is built on the Ethereum public chain. It allows anyone to become a member and purchase cover. It replaces the idea of a traditional insurance company because it is wholly owned by the members. The model encourages engagement as members will get economic incentives for participating in Risk Assessment, Claims Assessment and Governance.
We love to hear thoughts and questions from our community members. Our development team and community members are active on the following social media channels:
Last modified 8mo ago