Conclusion
We believe that InsurePal could be a good short-term investment subject to InsurePal’s ability to secure the UK MGA license and potential partnerships with risk-carriers. It is the first of its kind insurance company which raises fund through an ICO. The initial target market is the millennial crypto enthusiasts and thus might attract extra attention. The company has been quite effective with their marketing campaigns which create the reasonable hype to make the project attractive to investors who wish to speculate on short term gains of value. The team appears to be experienced, dedicated and professional. The reasonable vesting periods couple with low percentage of bonus for earlier investors help mitigate the risk of dumping the tokens after the crowdsale.
The long-term success of the project is, however, depends on a lot of factors, many of which might be beyond the control of the team itself.
Firstly, the obtaining of the necessary licenses from the regulators.
Secondly, the securing of the partnerships with the risk-carriers (without which the MGA business model cannot function).
Finally, the ultimate success of the social proof business model, for which we have expressed our concerns in the business model assessment section.
Furthermore, the white paper is lacking on sound and basic financials. We don’t need planning projections for 5–10 years, but at least some estimates for fees that will be charged and for what kind of services to understand the value added for customers or suppliers they need to be willing to pay for.
In our opinion, these pose a lot of uncertainties and will need to be carefully considered together with the development of the blockchain product since a blockchain MVP is not yet available at the time of writing this analysis.
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