Polkacover Fundamental Analysis

Over the years, with giant leaps in technologies in different industries, insurance companies face several challenges as it associates with complex compliance issues, limited growth in mature markets, fraudulent claims activity, third-party payment transactions, and handling tremendous amounts of data. PolkaCover was created to rescue with a handful of ways that insurers are leveraging the technology to mitigate these difficulties.

What is Polkacover?

PolkaCover (CVR) is a cryptocurrency token created on the Ethereum blockchain to develop a frictionless insurance marketplace experience accessible globally. Polkacover’s mission is to bring to the crypto users comfort that includes security, health, life, education & family insurance plans and a lot more products will be provided in the longer run.

What Does Polkacover Offer?

It is Founded by a team of seasoned insurtech, fintech, and blockchain experts who analyzed customers more accurately than ever before by providing advanced features:

Making insurance accessible to all

Keeping in view that insurance security is crucial for everyone; Polkacover has lowered the costs to make insurance solutions accessible to developing markets, beginning low-income businesses, and starting new product verticals to obtain insurance.

Lower insurance pricing by removing middleman

Blockchain technology leads to significant disintermediation of involved third parties in insurance. Third parties such as brokers and other intermediaries add costs and make the process timely as well as complex. Current insurance businesses have a whole new technology to meet the demand of consumers by removing middlemen to ensure risk-free premiums ad claims while the exchange of data.

Cross border payment solution

The arrival of blockchain solutions in the cross-border payments space is a piece of big news introduced by PolkaCover for both the consumers and the banks that are proactive in adopting the latest technology. Now with cross-border payment solutions, customers will be able to enjoy faster, more reliable, and strong international money transfers.

Phases of Polkacover

Polkacover believes in creating a well-developed marketplace for distributing and maintaining insurance to cater to its requirements in the world of crypto. It is creating the world’s leading first cryptocurrency-friendly insurance purchase & policy issuance marketplace to provide aggregations and associated services within the world of crypto.

PolkaCover is developed in four phases:

POLKACOVER CRYPTO PROTECT – PHASE 1 1. CRYPTO/DEFI INSURANCE PRODUCTS:

The advancements in the world of cryptocurrency are rapidly increasing day by day however the lack of insurance products is taking away the crypto community. In this situation, Polkacover took the initiative to innovate crypto and DeFi friendly insurance products. By digging deep, the need for the following products are recognized to develop an insurtech platform in phase 1:

• Loss of crypto due to exchange hack

• Loss of crypto due to a phishing attack

• Loss of crypto due to exchange hack

• Loss of investment due to fraudulent ICO

• Loss of crypto due to Wallet Hack

• Loss of crypto due token going bankrupt/project abandoned

• Loss of crypto due to mobile/Laptop/storage damage

• Loss of crypto due to exchange going bankrupt

INSURANCE MARKETPLACE FOR CRYPTO & DEFI PRODUCT & USERS – B2C MODEL - PHASE 2:

PolkaCover being the first aggregator serving crypto and traditional insurance products have introduced the B2C model to attract consumers from all over the globe. The model B2C of phase two offer different specifics:

Efficiency and Automation:

P2P insurance supports Smart contract technology with well-planned end-to-end automation, comprehensive claims processing. It is very effective for crafting custom experiences and driving business growth by lowering operational costs efficiently.

Lowering the risk of insurance fraud:

By moving insurance claims onto an immutable and transparent data ledger, PolkaCover is the platform that can help eliminate common sources of fraud in the insurance industry as compared to traditional models of insurance.

 Customer-friendly access:

The added security and lowering of the cost are two insurance solutions that enable developing markets, low-income businesses, and new product verticals to solve the problem of obtaining insurance by existing blockchain technologies.

P2P insurance platforms and providers:

Phase three comprises a Peer-to-peer (P2P) insurance model coupled with blockchain technology that intends to join individuals together and pool their resources for mutual aid. The P2P insurance model offers a unique response to the community in underdeveloped or developing countries. It works on the fundamentals of pooling risks where a group of people with similar insurance needs contributes to cover themselves against the potential financial loss.

PHASE 4 - CLAIMS MANAGEMENT FOR INSURANCE COMPANIES AND ADMINISTRATION

Policy claim management

With the use of Insurance policies as smart contracts on a blockchain in combination with automatically executing programmed claims to be processed, automating information transfers two parties will be added to the blockchain so that all involved parties have similar information, making disputes unlikely.

Claims and prevention management

Smart contracts powered by PolkaCover could enable customers and insurers to manage claims in a transparent, responsive, and irrefutable manner effectively. 

Fraud detection and risk prevention

PolkaCover discovered that Insurance fraud is one of the bugbears faced that is leading to higher premiums and worse coverage for consumers. To resolve this they formulated that it can be prevented by moving insurance claims onto an immutable ledger by removing their common sources of fraud.

Polkacover Tokenomics

With the introduction of CVR tokens that are vested to demonstrate long-term commitment into the business model, the incentive to use the Polkacover platform becomes significantly stronger for future objectives like immediate operational expansion requirement, broad marketing initiative, regulatory & compliance clearances, etc.

The interplay of CVR use cases is designed to encourage loyalty by maintaining the Polkacover platform's growth and expenses through good funding. There are the following uses of tokens.

Policy purchase

Crypto communities can buy policies using the PolkaCover token (CVR) that gives the holder a right to buy insurance or by adopting the easiest way of involving intermediaries who offer gateways and integrations which eliminates the need to own cryptocurrency from the end customer.

Cross border policy issuance

Cross-border policy issuance enables the access of Polkacover tokens on the platform and through leading exchanges globally.

Insurance policy discounts

Customers can buy policies using the Polkacover token and can get discounts up to 40% by encouraging its use.

Staking discounts

Staking PolkaCover Token (CVR) in the wallet, users will be rewarded for it in different ways:

• Interest paid annually 

• Additional rewards on policy purchase of PolkaCover

• Rewards for Governance & Risk Assessment within the P2P platform

• Staking a high number of CVR tokens will pay off your insurance premium free of cost. 

The Takeaway

PolkaCover is providing a billion-dollar opportunity to complete accountability, transparency, and superior security. In the future, the rise in the demand for CVR will be highly expected which will lead to the establishment of a healthy token economy with insurtech platforms. The users of PolkaCover are looking forward to a bright and interesting future to further enhance their experiences with it.