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The size/capital of the insurers is potentially irrelevant with smart contracts, as a small insurer with a small amount of capital can be just as reliable as a
by davidajackson 5y ago
The size/capital of the insurers is potentially irrelevant with smart contracts, as a small insurer with a small amount of capital can be just as reliable as a large one -- open source code enforces payouts so it likely won't matter.
This doesn't apply to all industries, and I agree about your example of crops. But specifically in finance, there will be a lot of 10x's.
- quantified 5y agoArticle suggests that my premiums drop by 90%, otherwise this phrase is meaningless, worse than the Geico 15% tag line: > having much clearer access is one way that smart contracts could save consumers 10 times more money than they do today. How does an insurer become strongly capitalized through smart contracts? The example is for a bidding market for insurance, not how it lowers any costs for the insurer or decreases their risks relative to capital on hand. The following sentence that supposedly explains it isn’t even coherent: > It seems reasonable to assume that a free market price where all parties in the world have the opportunity to bid will be much much cheaper than a centralized large corporation that is likely lock you into some sort of monopolistic relationship by throwing large amounts of paperwork and requirements at you. I expect a policy to cost less, in any market, than a large company. If I could buy State Farm for the price of my car insurance premium, I surely would.