Just recently we hosted a Twitter space between Marco, CEO of Ensuro, and Gregor on the future of underwriting capital. Both founders shared their ambitions and thoughts on how capital can be pooled in the future and reached a conclusion; The process can be heavily simplified through DeFi. The strategic opportunities that come from working together were hard to overlook which is why both projects agreed to form a strategic alliance to jointly disrupt the future of insurance underwriting. Underwriting redefined: Verso & Ensuro team up.
Ensuro set out on a mission to allow everyone to participate in its liquidity pools based on their desired amount of resources and time. This capital will back up insurance products, creating a stream of revenues for liquidity providers.
The project collects capital from liquidity providers, both retail and institutional, through a liquidity pool governed by smart contracts. This capital, currently only collected in stablecoins, provides underwriting capacity for insurtech companies operating in the parametric insurance space.
The capital collected in the liquidity pool is reinvested into decentralized finance protocols such as AAVE and Compound. These protocols offer low risk due to overcollateralized loans, high liquidity, and greater returns on investment than traditional risk-free assets. This way, Ensuro can rely on instant redemption of funds and provide both a competitive capacity to Insurtech companies and additional returns to liquidity providers.
The partnership with Ensuro marks another stepping stone in our roadmap “Phase III”. We aim to work with Ensuro and its partners to open up underwriting pools for our community. The goal is to have our community members earn a solid APR by providing the underwriting capital for new products that we distribute to distribution channels and our marketplace. Ensuro is already working on several great parametric products and we at Verso look forward to bringing them to the right distribution channels.
Ensuro is a decentralized capital provider for insurance risks. Ensuro aims to democratize the possibilities and the benefits of investing in risk while allowing innovative companies to nurture and deploy novel insurance products.
About Verso Finance
Verso is built for the regulated financial service industry and bridges the gap between traditional finance (TradFi) and DeFi by standardizing how financial products get distributed and connected to consumers via e-wallets, banks, and e-commerce platforms.