I have a general idea for it as a protocol that would track insurance pools with limited terms and risk factors. Each pool would consist of diversified risk profiles and of course it couldn't be anonymous if payout and risk factors were to be attributable. The advantage I could see immediately is instead of the excess pool money going towards profits it could be distributed to all pools equally. This ensures increased overall value the longer the system stays active. It is similar in nature to a life mutual but different in several ways.
The main issues I would like to get my head around are two fold: 1) How do you distribute benefits? This could either be by consensus or formula or value of the account (so its zero sum). 2) Coming up with a programmatic way to devise pools. This is probably the biggest problem because from my understanding insurance companies use actuaries and massively complex formulas to do this work now.
I know there are economic and pragmatic issues that may make this unfeasible but I thought I'd throw it out to the brains on here and see if there was any reasonable way to achieve such a thing. It would certainly be great to make insurance more efficient, less centralized, and hopefully more affordable.
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