✳ Efficiency of capital
👉🏾 "Traditional insurance companies usually invest premiums to generate income, which helps to keep the cost of premium low." This is not true.
In fact, the insurance premium is usually determined from the game and the law of large numbers, namely : how many people are covered by the insurance and the probability of having cases or the occurrence of the event to a given period.
Decentralized and distributed ledger technology called Blockchain, can do things more efficiently:
=> By also investing the premium paid by the members to guarantee the payment of the insured capital in case of loss.
=> the cost of the premium will be drastically reduced depending on the algorithmic mechanisms of blockchain, with that we talk about insurance "without insurance company" which has buildings, offices of brokers and representatives, which generate overheads and huge structural costs.

✳ Volatility
You can pay your premiums with a crypto, it is true that the crypto price is relatively volatile for several reasons. However, it is possible to stabilize the value of the amount received, by managing and leveraging with a kind of hedging portfolio with crypto and conventional assets. The case of crypto-asset basket set up by SUREBANQA ecosystem plays this role very well. No need to increase the cost of the premium for this

✳ Limitation of insurance fraud : it depends, this case we can combine IOT (Internet of Things) + AI (artificial intelligence) + Blockchain To fight and physically control fraud. For example, there are start-ups that offer blockchain-driven insurance that you can check on https://kasko2go.com/

According to some studies, insurance in the blockchain can help the customer save 3 times on the current cost of the premium.