Please Steal this Business: Blockchain-based Veterinary Insurance

Hello again everyone! So, one of my beginning of the year resolution was to start focusing on less things, and choose ideas that I can move forward for long. Well, this didn' t happen, I'm the kind of person that has ideas all the time, can't help it.

So decided to go the other way: instead of bothering friends and family to listen to my ideas, I'll just be posting them here, and if it is something that interests you, you are 100% free to use the idea as if it was your own. You are welcome to send me a check if it goes well, but it's still a free idea :)

This is one that I have been thinking in some way for some years already, but didn't go far enough in research to see how it works in other countries. The market focus is Brazil, but I can't see why it can't be adapted to work in other countries. Also, this is not a Web3 project, it uses a blockchain in the background to guarantee "perfect accounting".

Explaining in just one sentence

Really money-efficient insurance for pets, using blockchain-based lending pools for guaranteed/stable liquidity.

The Market

Most insurance providers for veterinary health (in Brazil) fit in one of two categories: either ones that are extremely expensive, or ones that are not real insurance. The latter is the most important here: they don't cover expensive medical bills, only check-ups and paliative care (like tooth plaque removal), so they are focusing on a different market that we are. We care about the former, and by reducing costs and overheads dramatically, there's a really big market to disrupt.

For the client, what they actually expects:

  1. They pay a fixed amount, monthly.
  2. When their pet gets sick, they have to pay less or nothing for their care.

That's, in a sense, a capitalization model. You expect the clients to pay for their own visits to the vet, just by doing it incrementally instead of at once. Most pets (as do most people) need to go to the vet at most once, twice a year, unless something happens which in most cases is not very common.

The Solution

The capitalization model can be done as a modified lending pool, popularized in the past by Compound, AAVE, Venus and many other protocols.

When the client pays a value monthly, part of this value (the fees) go back to the pool to pay for the lent money. When the client uses the insurance, the money is lent from the pool to the user account. This does not need to happen with user intervention, the lending pool rules take care of all the rules on the background.

The same as it would happen for normal money lending, the more you have invested in it, the more you can use to pay those bills.

Crypto = Investing?

When you talk about crypto on everything, there's a long discussion on how people can make more money by investing on the XCoin for your idea. That is possible here:

When the client deposits money on their account, they get paid a % from the pool, same as lending pools on Compound. The interest rate are created from the state of liquidity in the pool, but the guaranteed usage inside the pool (by enabling real-world use cases) can make it very interesting.

How to make the numbers make sense

I think the things that really needs to be well thought out and have a process for are:

  1. Renegociating bills: calling the hospital and the doctors and try to get better prices.
  2. Prospecting partners: exchange volume/clients for lower bills.
  3. Fraud Prevention: how to guarantee the bills you are paying are legit?

Conclusion

Well, that's what I've thought and written down about this idea, and you are hereby free to use it however you want. Have fun :)