UnoRe Fundamentals Analysis

Life has a very unpredictable nature. Any untoward incident may happen at any time. For example an accident or injury, a medical emergency, or even death. Therefore, a person would prefer to be financially compensated in any such eventuality. This is where the concept of insurance comes in. In principle, Insurance is a sort of safety net which covers the cost of any financial losses incurred by the client. In other words, it “reimburses” the policyholder who is the person buying the insurance policy. However, since in this day and age, things hardly remain simple anymore. 

A new concept called Reinsurance is slowly but surely gaining prominence. Although not really “new" in the traditional sense, it has been around for quite some time. It is the practice whereby one insurance company transfers its insurance policy to another company to save itself from having to pay a large sum in the event of a major claim or to protect itself from loss. As is the case with almost anything in the corporate world, Reinsurance is also controlled by a few big corporations. This is exactly what UnoRe attempts to change. The problem with big corporations is that they tend to have their way in finalizing insurance policies, leaning towards a somewhat dictatorial behavior. In contrast, UnoRe attempts to democratize the whole process and break the hegemony of a few big companies.

What is UnoRe: 

In simple words, UnoRe is an agile, fast, and futuristic Reinsurance trading platform. As with all such projects, UnoRe utilizes blockchain technology and a type of cryptocurrency called Polkadot. It enables the cross-blockchain transfer of all assets, not just digital tokens.  As explained before, UnoRe makes it a mission to democratize the whole process of reinsurance. It will do so by removing all bottlenecks and hurdles which impede investors, in an attempt to secure capital while simultaneously encouraging members of the public to take a more active and participative role in insurance and reinsurance. UnoRe also encourages its community to produce different, unconventional products which will result in a new range of insurtech-based companies into the larger UnoRe ecosystem. Another benefit of the UnoRe platform is that as long as insurance and reinsurance policies remain in the hands of a few big players, the scope becomes limited. Hence, a platform such as this ensures that the cycle of wealth remains limited to a select few, but rather to everyone who wishes to achieve it. 

UnoRe Products: 

There are quite a few upcoming, exciting products linked to UnoRe. Rather than launch a few dozen applications like other platforms, UnoRe has separate categories for investors, traders, and innovators within its ecosystem and as such, different services for all three of them. 

1. For Investors:

UnoRe makes it possible for investors to gain the maximum profit, that is, it has a high risk to reward ratio which encourages them to invest. Also, UnoRe has no minimum capital requirements, unlike other mainstream companies. 

2. For Traders: 

Stock trading in the insurance market has largely been dominated by those who want to ensure their grip on the system. This vice-like grip of the few elites on the whole industry is exactly what UnoRe disturbs and disrupts. We have heard plenty about markets for Stock trading, but none of the big players of this industry could come up with the idea of a market dedicated solely for Risk trading, except UnoRe.

3. For Innovators: 

Before UnoRe, only conventional insurance products were available which did not fulfill the ever-growing needs of customers. Now, this platform has made it possible to build new-age products such as those for health insurance and flight delay insurance, etc. with the option of creating new products, too.

UnoRe Features: 

1. Misalignment between parties:

Traditional reinsurers have little to no tendency to accept risks, hence innovative ideas and pathways cannot be followed. One of the major problems with traditional reinsurance is the misalignment between customers and the company providing insurance. Since UnoRe operates on a blockchain ecosystem, it can act as an intermediate and elevate the reinsurance market. Hence, it can be used as an alternative reinsurance platform.

1. Information asymmetry: 

Other companies tend not to disclose vital information to their clients under the pretext of supposed reduction in transaction costs. Ironically, hiding information from customers leads to an increase in these costs and also gives insurance companies an unjust edge over their clients. UnoRe goes against this by sharing all important information with their customers thus empowering them.

1. UnoRe insurance protocol: 

This enables current insurance protocols using cryptocurrencies to transfer their risks over to UnoRe. To that end, UnoRe has partnered with a crypto insurance platform called PolkaCover which will transfer their crypto-insurance portfolio to  UnoRe's reinsurance platform and increase user access to crypto-based insurance products. 

UnoRe Tokenomics: 

The platform utilizes UNO tokens, designed by the UnoRe team themselves. The team believes that the induction of UNO tokens into the reinsurance business gives more people incentive to use the platform and get linked to it. UNO tokens also enhance the utility of the platform as more and more customers can purchase insurance policies with the help of these tokens. UNO tokens also bring in additional benefits such as staking, discounts, and different kinds of rewards, among others.

In addition to this, UnoRe offers a 50% discount to those making purchases using the UNO token. Customers can also choose to retain profits as tokens or convert them into tangible, paper money called “fiat money" 

As is the case in all crypto platforms, tokens are distributed for use for many different purposes. In this case, the largest share of tokens, 31.5% to be exact, is dedicated to reinsurance which is quite understandable. 12.7% is reserved for market expenses, 10.8% for private participants, 9.2% for the community, 7.6% for the team,  5.3% for treasury while the same percentage is also reserved for liquidity, legal issues, and PR. Whilst 2.6% is allocated for advisors. 

Conclusion: 

The UnoRe team has an ambitious plan for the future. They plan to develop their risk trading platform by the fourth quarter of 2021 which means by the end of this year. Further ahead, the risk trading mobile app will be designed and developed by the first quarter of 2022 and released later the same year. The UnoRe platform “provides insurance to insurance providers" which is the textbook definition of reinsurance which is of course, crypto-based. 

In other words, we can say that UnoRe provides customers with a wide array of reinsurance products with an added layer of protection while also encouraging and incentivizing members of the community to invest in a common fund or pool, hence everyone shares the risks and losses. Almost all insurance companies face three major issues; transaction costs expected losses and long-tail risks. Corporate insurance companies tend to unjustly exploit and take advantage of gullible customers with the help of loopholes within the system.

UnoRe changes all of this, by lowering overall transaction costs and making reinsurance a better experience for all those involved. Transaction costs are dramatically lowered as they are payable in the form of UNO tokens.