RISK LAYER

Insurance Marketplace

The most operationally complete on-chain insurance system in production. 19 protocol transaction types, actuarial reserves computed every block, automatic policyholder protection on insurer failure with no smart contracts, no intermediaries, no court proceedings required.

19 TX TYPES9-STATE LIFECYCLEACTUARIAL RESERVESAUTO-REDISTRIBUTION6-DIM RISK ENGINE
19
Insurance transaction types
9
Policy status states
90
Days suspension before automatic redistribution
6
Dimensions in RiskCalculator engine
01
PRODUCT LIFECYCLE
Nine-status insurance lifecycle

Every insurance product moves through a protocol-enforced state machine. No state transition is possible without a valid consensus transaction from a designated authority account. The complete lifecycle is immutably recorded on-chain.

PENDING
APPROVAL
Registered. Not yet accepting applications.
WAITING
Approved. Before effectiveHeight. Visible but inactive.
ACTIVE
All transactions permitted: applications, premiums, claims.
UNDER
REVIEW
Supervisory watch. Regulator-initiated.
SUSPENDED
Operations halted. 90-day redistribution clock starts.
DELISTED
Immediate cessation. Redistribution at next block.
LAPSED
Expired without renewal.
CANCELLED
After redistribution completes.
EXPIRED
Natural end of policy term.

  At DELISTED status, or after 90 days of SUSPENDED status, the AFTER_BLOCK_APPLY handler automatically distributes the actuarial reserve pool to active policyholders, proportional to coverage amount, at the very next block. No court order. No liquidator. Zero delay beyond one block confirmation.

Insurance Authority Control

Only the Insurance Authority account (hardcoded at genesis) can approve products, initiate suspensions, and trigger delisting. The 9-state lifecycle requires authority account transactions for all supervisory actions.

90-Day Redistribution Clock

SUSPENDED status starts an automatic 90-day counter. If the insurer fails to resolve the suspension within 90 days, reserve redistribution triggers automatically executing protocol enforcement without regulatory process.

Automatic Policy Expiry

When a policy's expirationHeight is reached and no renewal transaction has been submitted, the AFTER_BLOCK_APPLY handler transitions the policy to LAPSED status. No insurer action required. No user request needed.

02
ACTUARIAL RESERVE ENGINE
Live solvency computed every block

The ReserveAllocation system implements functional actuarial science at the protocol level. Reserve requirements are updated every block from actual on-chain payout data without no static actuarial tables that become stale or quarterly revaluation cycle.

Required reserve = live loss ratio × safety multiplier × total coverage. Updated every block from real on-chain claim data. Protocol automatically blocks new policy issuance when reserves fall below the required threshold. No manual solvency check required.

THREE PLAN TYPES
PREMIUM: 1.5× Safety Multiplier
Enhanced reserve requirements for high-value corporate insurance products. Maximum policyholder protection. Protocol halts new issuance if reserves fall below 150% of expected claims.
STANDARD: 1.2× Safety Multiplier
Standard coverage for mass-market insurance products. Protocol halts new issuance if reserves fall below 120% of expected claims. Most common plan type.
BASIC: 1.0× Safety Multiplier
Minimum viable reserve level for microinsurance targeting low-premium emerging market populations. Viable at sub-$1 premium levels previously impossible with traditional infrastructure.
KEY RESERVE FEATURES
Live Loss Ratio
Required reserve computed from real on-chain payout data every block: reserve = lossRatio × safetyMultiplier × totalCoverage. No static actuarial tables as the requirement always reflects actual claims experience in real time.
Automatic Reserve Distribution
On DELISTED status: reserve pool distributed to active policyholders proportional to their coverage at the next block. On 90 days of SUSPENDED: same redistribution triggers. Policyholders are paid first with no insolvency proceedings.
Reserve Deposit & Withdrawal
RESERVE_DEPOSIT and RESERVE_WITHDRAWAL transaction types let insurers manage their reserve balance. The protocol enforces minimum balance requirements and withdrawals that would breach the required reserve level are rejected at attachment validation.
Real-Time Solvency Monitoring
Any participant can query the current reserve balance and required reserve for any insurance product at any block height. The blockchain provides real-time, independently verifiable solvency monitoring for every insurer on the network.
03
CLAIMS PIPELINE
13-status claims adjudication

The most detailed on-chain claims lifecycle in production. Every status transition creates an immutable record. The complete claims history i.e filing, investigation, approval, payment, is permanently on-chain and independently verifiable.

Filing to Investigation

CLAIM_SUBMITTED → UNDER_REVIEW → FRAUD_INVESTIGATION. Each transition requires an authorised insurer account transaction with timestamp. Filing creates the initial claim entity; investigation escalation is logged immutably.

Approval & Payment

APPROVED → PAYMENT_PENDING → PAID. Approved amount withheld from reserve on approval. Payment transaction releases funds to policyholder. Deductibles and coverage limits enforced by protocol at attachment validation.

Rejection Pathways

REJECTED, WITHDRAWN, LAPSED, CANCELLED, DISPUTED, FRAUD_CONFIRMED. Each terminal state carries a reason code encoded in the transaction attachment. Dispute resolution path built into the lifecycle where a DISPUTED status enables appeal adjudication.

04
RISK CALCULATOR
Six-dimensional credit and risk scoring

The RiskCalculator engine scores insurance applications and loan requests across six independent dimensions using on-chain data. No external credit bureau, no manual assessment, no subjective underwriter judgment but protocol-computed risk from verifiable blockchain history.

DIMENSION 01
Credit History
Prior loan repayment record, defaults, and late payments weighted by recency. Longer repayment history provides more signal; recent performance weighted more heavily.
DIMENSION 02
Debt-to-Income Ratio
Outstanding loan balance relative to incoming payment flows over the trailing window. High DTI indicates elevated default risk regardless of credit history.
DIMENSION 03
Collateral Quality
Type, current market value (from DEX price data), and liquidity of pledged assets relative to loan or insurance principal. Protocol-verified asset valuations.
DIMENSION 04
Account Age
Blocks since account activation. Longer history reduces perceived risk. Young accounts receive conservative risk scores until track record is established on-chain.
DIMENSION 05
Transaction Velocity
Activity level and consistency of blockchain usage as a proxy for economic stability. Irregular activity or sudden spikes receive risk adjustments.
DIMENSION 06
Insurance Coverage Status
Active coverage on the chain reduces lender risk for insurance applications. Insured accounts demonstrate lower risk profiles across all product types.
05
TRANSACTION TYPES
19 protocol insurance transactions

Every insurance operation is a distinct, typed consensus transaction. The protocol enforces business rules for each type at attachment validation before any state change.

PRODUCT MANAGEMENT
6
INSURANCE_CREATION: Register new product
INSURANCE_APPROVAL: Authority account activates
INSURANCE_SUSPENSION: Authority halts operations
INSURANCE_DELISTING: Authority terminates product
INSURANCE_RENEWAL: Extend active product
RESERVE_DEPOSIT / RESERVE_WITHDRAWAL
POLICY LIFECYCLE
5
POLICY_APPLICATION: Subscriber applies
POLICY_APPROVAL: Insurer accepts application
POLICY_REJECTION: Insurer declines
POLICY_CANCELLATION: Either party cancels
PREMIUM_PAYMENT: Scheduled premium collection
CLAIMS MANAGEMENT
8
CLAIM_SUBMISSION: Policyholder files
CLAIM_APPROVAL: Insurer approves
CLAIM_REJECTION: Insurer declines
CLAIM_APPEAL: Policyholder disputes
APPEAL_ADJUDICATION: Authority resolves
FRAUD_INVESTIGATION: Escalation trigger
CLAIM_WITHDRAWAL: Policyholder retracts
CLAIM_PAYMENT: Funds released to policyholder
DEPLOY INSURANCE PRODUCTS

Actuarial reserves. Automatic protection. Zero intermediaries.

Issue insurance products with solvency requirements enforced by the blockchain itself.