Claim Assessment

When evaluating claims on blockchain, there are two different approaches. An oracle, which may be an off-chain information source or an intermediary, can be used to trigger parametric insurance events as a first alternative. Crowd-sourcing is another alternative; information may be received from the general public, and assertions can be finalized by a voting system.

The use of a parametric trigger-based cover in conjunction with an oracle presents a number of restrictions and challenges, including the potential for oracle failure, a restricted product variety, and unsatisfied requirements. This may lead to undesirable outcomes for the client, especially in situations in which customers have suffered a loss notwithstanding the fact that the trigger has not been formally met. In order to avoid the issue that was described, it will be required to have backup claims processing systems. In addition to this, the data have to be of a sufficient level of detail to enable the development for public usage. The Internet of Things (IoT) is expected to bring a significant increase in the number of possible data oracles in the not too distant future; yet, these devices are not yet generally accessible nor are they reliable enough.

Therefore, InSaaS established the mechanism for claim evaluation by combining the oracle approach and the crowd-sourcing approach together into a single process. Any individual or entity is able to participate as one of our claim assessors; this could be an off-chain API that gets data from any kind of event or device, or it could be a manual assessment performed by a Third-Party Administrator (TPA) that has been registered with the protocol. These types of assessments perform to vote against or support the result that comes for other claim participants. Claim will only be paid out based on the outcome of the consensus, and there will be a grace period of 14 days after the conclusion of the claims process during which anyone may challenge the result of the claims.

When the InSaaS protocol receives a claim application, the "Claim Manager" contract uses an aggregator function to select claim validators from the pool of eligible validators. After the selection process, the chosen claim validators review the request and offer a claim adjustment amount, which represents the approved amount of compensation for the claim. For instance, a ratio of 0 indicates a claim denial, 100% indicates complete reimbursement, and any other ratio between 0 and 100 indicates partial compensation.

After the claim validators submit their approved amounts, the claim voters, who are validators that were not chosen to participate in the claim assessment but are still staked in the selected product pool, vote on the outcome using their MI Tokens as staked power. If the consensus threshold, which is typically set at 75%, is reached, the end of the evaluation determines whether the consensus is "Accepted" or "Rejected". However, if the result does not reach consensus within the expiry period, which may vary depending on the settings of each pool, the approved amount is reviewed by the governance board's sole discretion in order to provide the final outcome.

InSaaS protocol will trigger the claim payout if the outcome is "Accepted", otherwise no payout is trigger. Then, protocol will forward the claim to the grace period stage in order to prepare for the claim challenge, and all data will be made available on the website.

Overall, the claim assessment process in the InSaaS protocol involves the selection and review of claim validators, the voting of claim voters, and the final determination by the governance board or a successful challenge. It is designed to ensure that claims are properly evaluated and that policyholders receive fair and accurate compensation for their losses.