# Block Pharm Mutual > A Decentralised insurance protocol for supply chains > <!-- Put the link to this slide here so people can follow --> [Slides](https://hackmd.io/@A4cOLLUnQ6uIsUpPg-svBg/rkPo4oy09) --- ## Who am I? - Smart Contract Engineer since 2018 - Worked on biggest DeFi protocols on Ethereum - Specialist in Decentralised Governace --- ## Insurance At its core, insurance is simply a way for people to pool their risk for low probability, but high-impact events --- ## What is the problem we are trying to solve <br/> - Costs <br/> - Speed <br/> - Subjectivity --- ### 40% of Premiums are spent on operating costs --- ### Average time between making a claim and payout is `x` months --- ### Insurance companies are incentivised to not pay claims --- ### TradFi Insurance Co.  --- ### Pain Points - Too many humans in the loop - Costs of capital - Illiquidity of investments - Slow payouts --- ### Customers offload ***Risk*** and more importantly ***Trust*** to the TradFi Co. --- ### How Can We Do Better Two key advantages to our Decentralised system 1. Automation through smart contracts 2. Open Participation 3. Governance minimisation via a DAO --- ### Smart contracts defined Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. --- - Immutable by default - Cannot be arbitrarily changed - Do not require maintiainance or any extra costs to keep them running --- ### Mutuals > A mutual insurance company is an insurance company that is owned [in part] by its policyholders > [name=investopedia] [Investopedia Article](https://www.investopedia.com/terms/m/mutual-insurance-company.asp) --- ### DeFi Insurance Co.  --- ### What is a DAO - Blockchain-Based company - Shares == Tokens - Trust Minimisation [Explain like im 5: DAO](https://mirror.xyz/frankturtle.eth/dtlFeonKCDv6N19Cs-Im0tIcSQrnxt0YYdoYVDizvg0) --- - A DAO is essentially a permission system - Organise a group of people to collaborate and jointly own digital assets - Relationships are mediated by smart contracts eliminating the possibility of nafar --- ### How will it work - upgrading the parameters of smart contracts (actuary, investments) - distributing revenue from the protocol - future fundraising --- ### Wrap up - :arrow_down: Lower Costs - :arrow_up: Superior Customer Experience - :money_with_wings: Moneyyyy! --- ### FIN!