Basic Signed Quote Model

Basic Signed Quote Model consist of four key functions for external users to engage with its protocol: buying insurance policies, redeeming insurance policies, requesting claims, and receiving claim payouts. External users can be divided into two groups: individuals and businesses. Individuals are individuals or entities that buy insurance policies for themselves, while businesses are individuals or entities that issue policies for others on their behalf. The maximum number of policies that any single user is allowed to buy or issue may be limited based on their risk capacity limit.

To facilitate its operations, InSaaS protocol will use both on-chain and off-chain systems. Off-chain operations, such as product pricing, will be carried out using open-source code and inputs that will be made available on the blockchain. On-chain confirmation will be used to verify that the model was correctly executed. On-chain operations will involve storing policy data, claim-related records, and reinsuring risks to risk carriers, with the value and timestamp of each action recorded on the blockchain. This will enable insurance carriers to track their risk exposures, capital balances, and claim evidence in real-time. Any modifications made to the model or the input parameters will be managed by the governance mechanism. In the future, additional research will be done to find trust-minimizing alternatives for complex computing, with the final objective of removing this dependency.

The InSaaS protocol's primary goal is to ensure the long-term viability of each insurance pool by matching it with a risk carrier whose pricing structure can withstand the risks associated with the particular pool. To achieve this, the protocol will use a claim mechanism that is designed to prevent potential fraud claims and will also have a governance mechanism in place to manage any modifications to the model or input parameters. InSaaS protocol also oversees the solvency aspect of each insurance pool by ensuring that the risk carrier maintains sufficient reserve capital to remain solvent and pay claims associated with the pool of risks that have been transferred to it. The risk carrier can be anyone interested in taking on risk, including individuals or enterprises, and the ratio of risk transfer can vary from 0 to 100 percent depending on the pool's risk management strategy. All risk carriers must sum up to 100 percent in order to bear the overall risk exposure.

The Insurance smart contracts, the Upfront smart contracts, and the Risk Carrier smart contracts all work together to form the backbone of the protocol's insurance functionality.

The four main components of insurance-related smart contracts are the Pool Manager, Policy Manager, Pricing Manager, and Claim Manager. All information and settings relevant to a certain pool are the responsibility of the Pool Manager. All purchased and issued policies must be managed by the Policy Manager. The Pricing Manager must ensure the accuracy of policy prices and redemption values. The Claim Manager's job is to process any claims that have been filed.

The Upfront Manager is the brains behind all smart contracts initiated at the beginning. All up-front payments to associated parties must be managed via the Upfront Manager.

The Validator ecosystem includes the Validator Aggregator and the Validator Staking smart contracts. Each pool's validators' stats are monitored and used by the Validator Aggregator to determine who gets chosen. Validator Staking is in charge of managing the staking capabilities of all validators in each pool.

The Risk Carrier ecosystem comprises the Risk Carrier Registry, Risk Carrier Router, and Risk Carrier Controller, all of which are implemented as smart contracts. Services connected to risk carriers are handled by these arrangements.