On a scale from unknown to known, the UmbrellaCoin ICO appears to be very known.

The new insurance startup, which launched the crowdsale of its UMC tokens on August 20, 2017, has already raised close to $436,000 worth of ETH. UmbrellaCoin intends to raise a total of 100,000 ETH (~$30 million) by the end of September 20, 2017. It would be too soon to comment whether they can achieve their goal. But the way this startup has kick-started its ICO campaign is promising, to say the least.

Ethereum-based Token for Insurance Benefits

UmbrellaCoin is building a token on the top of Ethereum blockchain to offset traditional costs associated with claims for traditional insurance companies. The startup also proposes to remove the centralized auditing process with a much efficient decentralized protocol.

“Our first and the foremost aim is to counterbalance high customer costs for uncovered care costs imposed by insurance companies,” stated Terry Tata, the President and the CEO of UmbrellaCoin. “These care costs include copays and deductibles, where it be in the automobile, healthcare, life, or property insurance.”

Tata believes their project has the means to complement traditional insurance models, mostly because it allows the customers to take benefits from hidden finances. So, in an ideal scenario, if a user does not claim, or his initially invested UMC is not used by the end of the period, he can receive the 100% refund.

However, in case the claim was made, then the user will be entitled to receive 5x the UMC spent within the policy period. Users can also choose to suspend their policy anytime before the date of maturity, but they would have to pay 40% of the invested UMC as the penalty.

In addition to this, there are also other measures proposed to guard the pool against fund depletion. They include a cap on individual investment, starter fees, cooling period, fraud claims, and minimum policies.

It is evident that UmbrellaCoin has intentions to deliver on its roadmap to build a decentralized, peer-to-peer insurance platform. A successful ICO will ensure that they have sufficient capital available to meet their roadmap goals.