FAQ - Risk Partners
This section provides answers to frequently asked questions from our risk partners.
FAQ - Risk Partners
How does Ensuro differ from a traditional insurance capacity partner?
Ensuro offers:
Quick access to DeFi investor capital
Real-time visibility on insurance product performance
Lower operating costs, enabling cheaper capacity for risk partners
These advantages allow Ensuro to conduct small-scale pilots with risk partners, a practice uncommon among traditional insurers.
Our approach:
Begin with a small policy sample
Gradually increase volume
Monitor product performance in real-time
Adjust pricing dynamically
Ensuro maintains collaborative relationships with risk partners, working together to optimize pricing
How much cheaper is Ensuro’s capacity as compared with the traditional market?
Ensuro's technology streamlines the risk transfer process, resulting in:
Faster operations
Lower operational costs
We pass these savings to our risk partners through competitive pricing. While capacity providers often offer varied prices for the same risk based on factors like:
Portfolio diversification strategies
Market entry initiatives
Business acquisition goals
Ensuro's significantly lower operating expenses allow us to consistently offer pricing 20-25% below traditional carriers.
Do you only underwrite parametric products?
Ensuro's infrastructure is not limited to parametric products. However, we prefer short-tail risks, where:
The trigger event is clearly defined
The payout settlement period is precise and limited
This approach ensures efficient and timely claim resolution.
How do you underwrite a risk?
Ensuro's approach to risk assessment:
Initial underwriting: Performed by the risk partner seeking to use the Ensuro platform.
Review process: Ensuro's Quant team carefully examines the risk partner's underwriting model.
Analysis and simulation: Conducted by the Quant team to protect liquidity providers' investments against potential losses.
This process ensures thorough risk evaluation without Ensuro re-underwriting the risk directly.
How can you guarantee your solvency in case of a payout?
The smart contract automatically checks for sufficient capital in the Ensuro Liquidity pool upon receiving a policy premium. If capital is insufficient, the policy is rejected and the premium is returned to the sender's wallet. If sufficient capital is available, funds are allocated and locked for the policy duration to guarantee solvency. This automated process ensures proper capital management for each policy.
How long does it take for a new program to be launched?
The process to launch a new program is relatively quick:
Initial Assessment:
Gather preliminary information and understand the product
Ensuro Quant team (QT) discusses legal requirements with the risk partner
Risk Model Evaluation:
If legal requirements align with Ensuro's licenses, a detailed questionnaire with specific questions regarding the risk model and the underlying assumptions to support the model is shared
QT reviews responses and requests additional material if needed
Pricing Discussion:
QT shares portfolio simulation results and offers preliminary pricing
Both parties negotiate and agree on pricing
Integration and Formalization:
Ensuro Technical team integrates the risk model into the protocol
Legal agreement is prepared concurrently
Launch:
Risk partner completes technical integration
Legal agreement is signed
Program is ready for launch
Timeframe: Depending on product complexity, the process typically takes 2 weeks to 2 months.
Do I need to have blockchain experience in my team to integrate with Ensuro?
Integrating with Ensuro requires no prior blockchain experience. We aim to simplify the process by handling blockchain complexities, making integration seamless for our risk partners.
What's the cost of Ensuro's service?
Ensuro applies a flat percentage fee based on either the program's revenue or the gross written premium for the covered product. The specific fee rates vary based on the nature of the risk and the size of the portfolio.
Does Ensuro control the price of the product for my end customers?
Ensuro provides guidance on the net premium required to access capital from its liquidity providers. However, risk partners retain full control over the final price charged to their customers.
The insurance product I want to cover is new and there's not that much market data. Do I have a chance with Ensuro?
Absolutely! Ensuro is designed to facilitate the launch and growth of new, innovative products in the market. We're keen to explore how we can potentially onboard your risk to the Ensuro platform. Let's schedule a discovery call to discuss collaboration opportunities.
Can I help propose or build insurance products?
Yes! We encourage developers and people interested to join our community and build on our framework. Do not hesitate to reach out to us by email at info@ensuro.co or leave us a message here and we will contact you as soon as possible.
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