In modern society, insurance is almost a fundamental requirement for a human being; financially protecting oneself against risk or illness is essential. However, the present industry is making vast sums of money while providing low standards of service.

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Traditional centralized insurance systems suffer from a few issues that are cause for concern in the modern age. Firstly, higher operational costs often mean the consumer is paying a lot more than they should, long payout periods and high rejection rates are inefficient and problematic for those in need. Furthermore, user data collected, kept and sold by service providers doesn’t exactly inspire confidence, not to mention the risks of external attacks.

Blockchain Implementation

Global awareness and experimental applications of blockchain technologies are growing substantially in number, and their rapid emergence has prompted innovators as well as industries to see how it can benefit them and the world at large.

Insurance is a huge business, premium revenues last year accounted for 5.7% of the global economy ($3.92 trillion), and is one of those sectors that can largely benefit from blockchain.

Hi Mutual Society (HMS) is the first platform of its kind; it’s a smart, open, and transparent self-help global mutual support platform built on a blockchain smart contract system. Since its launch in March 2018, the platform has deployed three products that will spark revolutionary new trends in the industry.

Mutual Support Products

The Global Health Mutual Support product is decentralized so that global members who join the plan can share health risks with each other. HMS writes: “one person suffers from illness and everyone will equally afford the cost.” Members of HMS can obtain stable health risk protection at lower cost.

Members are only required to store 100 of the platform’s native token HMC in smart contracts and, after a 180 day observation period, should the member suffer from one or more of the 30 major illnesses, they will have right to receive up to 300,000 HMC in mutual support compensation.

Token Support was launched for crypto users specifically; it provides blockchain mutual support so when other users join the community through mutual contracts, they may receive a hedging advantage during market ups and downs. The mutual support fee for each phase is 0.01 – 0.02 ETH, lucky members who are elected by members of the community can earn up to 2 ETH.

In April, HMS released the Flight Delay Mutual product, providing a flight delay mutual support in which users will again only be required to pay 100 HMC and the flight information to be part of the plan; should the flight meet the criteria for payout then they can receive up to 2000 HMC as compensation.

HMS is brilliantly demonstrating the benefits of the blockchain: breaking down geographical restrictions, high security and privacy, miniscule costs that lower entry barriers, and intermediary costs reduced to a tiny percentage. The use of smart contracts ensures fast and secure settlement periods, resulting in faster payouts.

To find out more, head to the HMS official website here.