Demands
What are Demands in Personalized Insurance?
Demands in Personalized Insurance refer to the unique opportunities for underwriters to participate in the creation and provision of customized insurance Policy. Each demand represents a specific insurance request with personalized terms and conditions set by the Demand Creator.
How does underwriting Demands work?
Discovering and Assessing Demands: Underwriters can explore the available Demands listed on the Demands page. Each demand specifies the Policy terms, Premium, and other relevant information. It's essential for Underwriters to carefully assess the Demand and understand the associated risks since each Demand is unique.
Underwriting the Demand: Once an Underwriter identifies a Demand they are interested in, they can choose to provide coverage by depositing Collateral into the Demand. By participating as a Demand Investor, underwriters can earn Instant Rewards.
Claiming Instant Rewards: One of the significant advantages of underwriting Demands in Personalized Insurance is the opportunity to claim Instant Rewards. Demand Providers have the privilege of instantly claiming all Premium for their underwriting period. This Instant Reward claiming feature allows Underwriters to enjoy immediate returns and the flexibility to reinvest their earnings.
What can Underwriters gain by underwriting Demands?
Instant Reward Claiming: When Demand becomes Valid, the Underwriters can claim their rewards instantly, providing them with immediate returns on their underwriting activity.
Flexible Reinvestment: By gaining immediate access to their earnings, underwriters have the freedom to reinvest their funds as desired, allowing for potential compounding and maximizing their returns.
Diversification: Underwriting Demands offers underwriters the opportunity to diversify their investment portfolio by exploring different insurance demands with varying risk profiles and reward potentials.
Contribution to the DEIN Ecosystem: Underwriters play a crucial role in the DEIN ecosystem by providing Collateral and facilitating the availability of Personalized Insurance options. Their participation supports the growth and sustainability of the platform.
What risks should Underwriters consider?
While Personalized Insurance offers exciting opportunities, Underwriters must carefully assess the risks associated with each Demand. As each Demand is unique, it's crucial for Underwriters to evaluate factors such as the Demand's terms and potential Project risks before providing coverage.
Underwriters should consider the financial implications and the possibility of loss based on their risk tolerance and due diligence. DEIN provides a platform for Underwriters to explore and engage in Personalized Insurance, but the assessment and decision-making process regarding risk remains the responsibility of the individual Underwriters.
What are the different demand statuses?
Open – lasts for at most 72 hours after its creation. Demand Investors can provide Collateral for this Demand.
Pending – Required Collateral hasn't been accumulated, but there are some funds. Demand Creator has 24 hours to validate a Demand forcefully, thus changing the Policy Size, recalculating and withdrawing a portion of the Premium.
Closed – happens automatically, if Required Collateral is not accumulated or Demand Creator has not forced validation. If no Demand Investors participated in the Demand, the Demand Creator can withdraw 100% of their paid Premium; otherwise 1% of the paid Premium is distributed to the Demand Investors as compensation.
Valid – happens automatically if the Required Collateral is accumulated during Open status (72 hours) or Demand Creator has forced validation. From this point onward Policy terms and Policyholder rights apply.
The demand I invested in didn't raise sufficient liquidity, what now?
In this case, the Demand creator has extra 24h to forcefully validate the demand. If they choose to do so the Premium will be recalculated to reflect the new Demand size and the unused portion of the Premium will be returned to the Demand Creator.
This situation will not, however, affect Demand Providers in any way other than beneficial. There is no possibility of losing any rewards due to the forceful Demand Validation.
What if the Demand Creator won't Validate the Demand?
Then the Demand closes and Demand Providers are recouped with a shared 1% of the total Premium as a reimbursement. They can also instantly withdraw their invested funds.
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