Ensuro is a decentralized underwriter to support insurance products. It will democratize the possibilities and the benefits of being an insurer while allowing innovative companies to nurture and deploy novel insurance products. Ensuro aims to provide insurance to the uninsured, serving uncovered markets to benefit policyholders, local model providers, and investors pursuing high social impact.
The Ensuro protocol builds liquidity pools to cover insurance risk. By allowing everyone to become an insurer, it pushes the boundaries of the current DeFi space. Ensuro provides a fast route to capital for insurtech companies and risk model providers who want to build novel products.
How it works
Ensuro collects capital from Liquidity Providers, both retail and institutional, through a Liquidity Pool governed by smart contracts. This capital, collected in the form of cryptographic stablecoins, provides underwriting capacity for Insurtech companies operating in the parametric insurance space.
The capital collected in the Liquidity Pool is reinvested into Decentralized Finance Protocols such as AAVE and Compound. These protocols offer low risk due to overcollateralized loans, high liquidity, and greater returns on investment than traditional risk-free assets. Therefore, Ensuro can rely on instant redemption of funds and provide both a competitive capacity to Insurtech companies and additional returns to Liquidity Providers.
Ensuro leverages a Quality Assurance System to monitor the performance of each risk model, certifying that it fits the standard parameters defined during integration.