Description
Ensuro is a decentralized underwriter for insurance products, aiming to democratize the benefits of being an insurer while enabling innovative companies to develop and launch new insurance offerings. The platform focuses on serving uncovered markets to benefit policyholders, local model providers, and investors seeking social impact. Ensuro Re Ltd. is regulated by the Bermuda Monetary Authority (BMA) with both a Digital Asset Business Class M license and an Insurance General Business (IIGB) license. The platform operates on the Polygon blockchain, using smart contracts for underwriting and capital management. Capital in eToken pools may be allocated to DeFi protocols like Aave and Compound to generate yield. Ensuro operates as a segregated accounts company, where each eToken pool represents a digital form of insurance risk capacity linked to underlying collateral and premiums.
As a blockchain protocol designed to provide capital coverage for insurance risks, its main goal is to ensure it can cover losses for the risks it underwrites. The capital required, known as solvency capital, is sourced from two main streams: pure premiums paid by policyholders, which cover expected losses, and a Solvency Capital Requirement (SCR) from liquidity pools (eTokens) to cover unexpected losses. Investors, or Liquidity Providers (LPs), can deposit stablecoins like USDC into these eTokens and earn a return. The protocol manages risks through 'risk modules,' which are smart contracts representing specific insurance products from Ensuro's partners. These modules are responsible for policy creation, pricing, and resolution.
The organization's vision is to create a simple entry point to insurance investment for individual investors and a more efficient alternative to traditional (re)insurance companies for risk takers seeking capacity. Its mission is to make insurance more accessible to the general public by using smart contracts to curate competitive insurance portfolios, allowing anyone to invest in insurance risk and reap its benefits.