Last updated 5 months ago
Life insurance is hard to get in under developed regions of the world. Cardano should address this
We will explore what a fully on-chain life insurance product will look like, from proof of life to proof of death. Insureds will have seamless transactions and a few clicks to get a simple life cover.
This is the total amount allocated to Cardano Native Term Life Savings Protocol.
Please provide your proposal title
Cardano Native Term Life Savings Protocol
Enter the amount of funding you are requesting in ADA
42000
Please specify how many months you expect your project to last
7
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Life insurance is hard to get in under developed regions of the world. Cardano should address this
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
No dependencies
Will your project's outputs be fully open source?
Yes
License and Additional Information
Apache 2.0 License
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Financial Services
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
We plan to combine the robustness of Fida's Risk Transfer Engine, the transparency of smart contracts, and the wisdom of the Vitalis Collective—a decentralized autonomous organization (DAO)—to create a self-sustaining, community-driven coverage ecosystem.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
At the end of these efforts there will a dedicated web page and application where anyone can start a term life savings plan. This will of course be an mvp and will be available on testnet first. We will continue to build out the required details in order
Describe realistic measures of success, ideally with on-chain metrics.
By supporting this proposal, Cardano can demonstrate its commitment to leveraging blockchain technology to address pressing global challenges. Furthermore, this endeavor aligns with the United Nations Sustainable Development Goal 10, which calls for reduced inequality. By bringing insurance solutions to under-served populations and enabling participation from diverse stakeholders, Cardano can contribute significantly to achieving this goal and solidify its position as a leader in driving positive social impact.
A novel life insurance product is an excellent proof of Cardano's worth.
Please describe your proposed solution and how it addresses the problem
This product bridges this gap by offering a Term Life savings program that is:
Decentralized: Built on Cardano’s blockchain, eliminating intermediaries and reducing costs.
Automated: Governed by smart contracts that execute payouts instantly upon verified claims.
Community-Driven: Managed by the Vitalis Collective, a DAO where stakeholders vote on risk parameters, premium rates, and fund allocations.
Transparent: All transactions, policies, and claims are recorded on the blockchain, ensuring accountability and trust.
At its core, Vitalis is a trustless savings pool where members contribute to a shared fund, and in the event of a claim, beneficiaries receive payouts without relying on legacy insurance companies.
Please define the positive impact your project will have on the wider Cardano community
The gap of Life Insurance across the world is between 32% to 75% across US and Europe.
Across Asia and MEA the average gap is actually 95%. The total population is a 3.2 billion.
Even if 10% this population is in the digital world - we are speaking of 318 million people to cover. Given the mortality rate of 1 - 4 per thousand globally we are looking at creating history with a possibility of penetration that hasn’t been ever done
Integrating Insurance Tech into the Cardano Ecosystem aligns with Cardano's core values of sustainability, transparency, and inclusivity.
By supporting this proposal, Cardano can demonstrate its commitment to leveraging blockchain technology to address pressing global challenges. Furthermore, this endeavor aligns with the United Nations Sustainable Development Goal 10, which calls for reduced inequality. By bringing insurance solutions to under-served populations and enabling participation from diverse stakeholders, Cardano can contribute significantly to achieving this goal and solidify its position as a leader in driving positive social impact.
A novel life insurance product is an excellent proof of Cardano's worth.
What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?
We've already built the core tech of the Fida platform as we have shown in our CLI and the web interface for the risk transfer marketplace during the Cardano Summit.
Priya has over 24 years building life insurance companies with novel products and bring them to fruition around the world. Together with Motaz we have all the necessary connections within the insurance industry to deliver a valuable product for the Cardano Community and the rest of the world.
Milestone Title
Whitepaper and protocol models.
Milestone Outputs
An insurance model determining minimal rates and numbers of participants needed for the system to be revenue positive.
A simple term life savings model explaining how the protocol can grow and maintain a life insurance protocol.
The model is able to work through a variety of signup and death rates to model appropriate loss ratios.
Acceptance Criteria
As avaiable content for the acceptance criteria, both the insurance model and the accompanying whitepaper shall be made public and the minimum viable launch parameters shall be shared allong with them for the cardano community to evaluate.
Evidence of Completion
As tangible output for evidence of completion, both the insurance model and the accompanying whitepaper shall be made public and the minimum viable launch parameters shall be shared allong with them for the cardano community to evaluate.
Delivery Month
2
Cost
12000
Progress
50 %
Milestone Title
Smart Contracts enforcing system operation
Milestone Outputs
At this milestone we will be ready to have all the smart contracts (validator scripts) needed to connect and execute the protocol as described in the first milestone.
The smart contract code needed to mix individual policies and a mechanism for fluid or periodic activation of the same.
Acceptance Criteria
As avaiable content for the acceptance criteria, the core smart contracts (validator scripts) needed to connect and execute the protocol as described in the first milestone shall be shared allong with them for the cardano community to evaluate.
Evidence of Completion
As tangible output for evidence of completion, the cire smart contracts (validator scripts) needed to connect and execute the protocol as described in the first milestone shall be shared allong with them for the cardano community to evaluate.
Delivery Month
4
Cost
18000
Progress
80 %
Milestone Title
Extension to the core protocol and final summary
Milestone Outputs
Here we will have extensions for other protocols like GenWealth and additional bootstrap liquidity via Fida.
We will introduce the KYC aspect as well as integrate the opt-in option to include our policies within their Wealth Transfer System.
Finally: A full report of the viability and methodology for KYC and death certificate validation along with the plans for rolling out a potential product.
Acceptance Criteria
Updated smart contracts with the necessary features to do KYC and GenWealth integration.
Documented KYC process for the Insured, and upon claiming of the policy.
Finally, A documented process start to finish for the operation of applying and receiving life insurance on Cardano, with said insurance payout ultimately claimed by a beneficiary.
Evidence of Completion
The model is expressed as an excel sheet holding the tabled values and formulas.
Smart contract code in our public github repo.
A document explaining the process of who and how the KYC will be performed in a selected jurisdiction.
Delivery Month
7
Cost
12000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Policy research and development, including:
rates, estimates, underwriting and policy write-up: $16,000 USD
Proof of Life and Proof of Death mechanism R&D and survey data acquisition on which regions would make sense to start in, given the degree of automation, trust and coincidence with potential users. $8000 USD
Smart Contract Development: $18,000 USD
Total: $42,000 USD
How does the cost of the project represent value for the Cardano ecosystem?
The cost of the project represents value for money for the Cardano ecosystem in several ways:
Potential Impact: By bringing a working life insurance product to the Cardano Ecosystem the project has the potential to unlock significant value and opportunities. Insurance technology can provide greater financial inclusivity, risk mitigation, and economic stability, aligning with the goals of reducing inequality. The long-term benefits and positive impact of this integration will far outweigh the initial costs.
Market Potential: The insurance industry is a multi-trillion-dollar market globally. By leveraging the Cardano Ecosystem to introduce Insurance Tech, life insurance is a first step in an opportunity to tap into this market and create new revenue streams. The costs associated with the project are justified by the potential market growth, attracting new participants, and expanding the ecosystem's reach.
The insurance gap is huge across the globe: 32-42% across USA to Europe and anything between 92-98% across Asia / Africa and the MEA. We start with the digital community- who even if 10% of the population - will be an approx 318-320Million people. Long term products give returns compounded which will outweigh the costs.
Future Returns: While the upfront costs may seem significant, they are an investment in the future growth and development of the Cardano ecosystem. The integration of Insurance Tech can attract new users, increase transaction volumes, and enhance the overall ecosystem's productivity and value. The long-term returns and benefits generated by this project can far exceed the initial expenditure. Also with the insurance world looking at the digital expansion - Cardano Community will have the first to hold the first TRUE digital ecosystem for life insurance with policies and laws specific to the digital community.
Terms and Conditions:
Yes
Rodolfo Hansen: Fida CEO and project facilitator
https://www.linkedin.com/in/rodolfohansen/
Priya Krishnamoorthy: Project Lead and Lead Underwriter