Malpractice insurance product that utilizes smart contracts to streamline the claims process and to decentralize operations. Insureds sign a relatively standardized policy contract determining coverage duration and type (claims-made vs occurrence, tail coverage, specific conditions and exclusions). Premiums, the amount of which is determined by an open-source risk model, are pooled together and used to cover claims payouts. Pooled funds are locked inside a smart contract. Policy holders (and anyone else in the world, really) can view every single transfer of funds both in and out of the smart contract as well as calculate and verify the risk pool safety margins for themselves.

Key Values

Algorithmic, decentralized, member-operated. Maximally transparent, consistently fair, and as structurally lean as possible.

Required features

Regulatory Compliance




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Captive Insurance Company

In a captive insurance company, the insureds have direct involvement and influence over the captive's operations, including underwriting, claims management, and investments. This direct involvement often means that the insured can reduce its insurance costs (i.e., premiums). However, as a self-funded mechanism, if a captive does not properly plan and reserve for losses, the parent organization's financial position can be significantly impaired.

There are two basic types of captives: (1) a pure or “single-parent” captive and (2) a group captive. In a pure captive, a parent company (e.g., a hospital or medical practice) forms an insurance company to insure its own risks. In a group captive, multiple, non-related organizations form or participate in an insurance company to insure risks common to the group.

To form a captive, a hospital or other health care professionals need to select a domicile in which to incorporate. Captives have several options when selecting a domicile. A captive may incorporate: (1) on-shore in a state with legislation that permits captives (e.g., Vermont); (2) in any state if forming as a risk retention group (RRG) captive, a type of captive authorized by federal law; or (3) off-shore in a country that permits captives (e.g., Bermuda, Cayman Islands, Ireland). A captive must comply with the laws and regulations of its domicile.