By relying on blockchain technology, PolicyPal says it can provide cheaper insurance products for emerging markets
Singapore-based insurtech startup PolicyPal raised 23,809 ETH (ether) last week via an Initial Coin Offering (ICO), giving the company about US$20 million in fresh funding.
The ICO was conducted in two phases: a private pre-sale and a public crowdsale. The company claims that tokens for the latter sold out within 38 seconds.
The newly-raised capital will be channelled towards developing the PolicyPal Network, a blockchain-based insurance product ecosystem.
Founded by CEO Val Ji-hsuan Yap in 2016, PolicyPal is a mobile app that allows users to track all their insurance policies on one platform. It uses Artificial Intelligence (AI) to digitise and store the policies.
PolicyPal already has several major insurance providers such as AIG, Aviva, AXA, Etiqa and NTUC Income onboard its platform. Last year, it raised an undisclosed seed funding from 500 Startups and a group of undisclosed angel investors.
Yap has hinted at expanding to regional markets such as Taiwan, Indonesia, Thailand and Japan. With its blockchain play PolicyPal Network, the company will now be able to reach into emerging markets.
“PolicyPal Network is a platform built with a two-fold vision of addressing key issues that overlap the fields of both insurance and cryptocurrencies in the world today,” Yap, tells e27.
“PolicyPal Network plans to achieve this by leveraging a host of existing firm partnerships in these emerging markets to serve the millions currently without access to protection due to complex buying processes and high insurance premiums,” she says.
PolicyPal Network will roll out its P2P mutual aid insurance in the future, which uses smart contracts to automate the underwriting of claims handling, allowing insurance premiums costs to be reduced.