The economic burden caused by ctritical illness has been a challenging issue for all human being. As a leading innovator in China, Qingsongchou kept working on the solution of medical cost trend and had launched its first product, “Qingsongchou Mutual Plan”, in 2016. During the 1 year period, over 8 million people have joined the plan and a USD 15 million premium has been collected. Due to Qingsongchou’s great contribution to the healthcare market, it was voted by CB Insights as one of “The 250 Most Promising, Private Fintech Companies From Around The World”. Recently, Qingsongchou has expanded its market and launched the English version of its site – Qfund.
In this revolution of technology, blockchain was introduced to the world and Ethereum, and next generation of blockchain, brought smart contract to the system. Qingsongchou and its team keeps exploring the application and the potential of blockchain. With their mature data model and rich experience in mutual market, Qingsongchou intends to overturn the current healthcare industry by building up a Health Mutual Society (HMS) on Ethereum.
On August 28th, the ICO (Initial Coin Offering) of HMC is going to be launched globally (for details, please visit their official website: www.hms.io)
The Operating of HMS
HMS will deliver affordable healthcare coverage by removing intermediate cost and separating the medical cost among members. Both individual and organization will be able to join the plan by depositing a certain amount of tokens. When a qualified policyholder is diagnosed with one of the specific illnesses on the predetermined list, s/he could upload the documents and file a claim. As long as the claim is approved by the elected notary organizations, a certain amount of token will be released as payout. The community will be managed by elected committee at the beginning and gradually decentralized. Restricted by smart contract, the operation of the system will be autonomous, efficient and transparent.
The Advantages of HMS
- Backing by Qingsongchou, one of the largest fintech companies in China
As the main sponsor of the platform and the core member of the committee, Qingsongchou has the most advanced user data and operation experiences in the mutual market. With the support of Qingsongchou’s over 160 million registered users, HMS is confident in building its own prediction model which can be used to measure user behaviors and build a decentralized mutual society. As a cold start, roughly 10 million users are expected to be introduced by Qingsongchou to the community over the first six months which will make HMS the most tangible ICO project compared with others.
- Reducing the burden of healthcare by separating the cost among members.
HMS could be considered as a combination of both mutual insurance and online community. It allows individual to purchase insurance at an acceptable price. The decentralization will significantly shorten the business process and lower the cost of intermediary. By building up a mutual society, the potential risk and the medical cost will be diversified among members, and policyholders will get insurance coverages at a reasonable price.
- Improving the efficiency and lowering the operation cost by decentralizing the system.
In the existing pattern, users purchase health insurances without the risk and the performance of insurance company being fully aware. While the new system is going to be built without relying on trust, users’ interests will now be ensured by smart contract and the operation cost will hereby be significantly lowered. As long as the Ethereum operates well, the Insure-Claim process will be automated. The transaction history will be fully recorded, which makes the cash flow traceable and increases the level of transparency.
- Breaking the barrier of regions and hedge the risk of globalization
By using digital token, the platform will break the geographical restrictions and allow its user to participate remotely. Compared with traditional financial system, the implementation of blockchain will streamline the clearing and settlement process, shorten settlement windows, and avoid substantial capital and operating expense. It would be easier to integrate global resources and expand the coverage of service.
- Generating an anti-inflation community product with huge growing potential
The history of insurance industry is associated with the inflation of fiat currency. However, the mutual market is facing an even more pressing challenge coming from inflation. Current critical illness insurance usually offers an average USD 15,000 to 45,000 as payout. Due to the inflation and medical cost trend, the present value of potential future payout is shrinking extremely. The implementation of decentralized community and digital token (cryptocurrency) creates a virtuous cycle of assets which offers a protection against the inflation and turns the purchase of insurance policy into an investment of asset.
- Gathering up scattered organization to achieve a mutual success.
The stability and profitability of the mutual market are highly influenced by the scale effects. However, user behavior is usually complicated and variable, which increases the difficulty of user acquisition and makes the operation of platform costlier. Additionally, the competitions in the market bring more chaos to the system. By building up a health mutual society and turning potential competitors into partners, HMS intends to set up a new mutual support pattern and helps each party reach a mutual success.