Heart-Beat talked to Sergey Sevryugin, the founder and the CEO of the REGA Risk Sharing project, who provided an overview of the shared economy market and told us how to share the risks with the community.
What is Rega?
Sergey: The development of the Internet and of the digital technologies led to the emergence of the sharing economy, within which people prefer to replace sole proprietorship by the shared use of commodities and services, by barter and rent. Over the last years, a great number of services proved that people can share the use of cars, houses, bikes, boats and even parking boxes. The REGA Risk Sharing project is developing a service that would enable people to share the risks in the same way.
Why, do you think, Rega will be demanded on the market?
Sergey: The ideology of shared use has already taken root in a number of fields such as the transportation, the rent of the real estate and various premises (offices, storehouses and parking lots), clothes, food and even money. This approach is was invented by the companies Uber, AirBnB and BlaBlaCar. Gradually, as these companies reached durable success, the sharing economy projects started to concern not just commodities to be purchased or rented, but services as well.
The capacity of the shared use market is evaluated as high: according to the PwC report, in 2017 the total volume of transactions in five sectors of the sharing economy (led by car rental and real estate rental services) will grow 60% to reach € 27 billion. That being said, the number of sectors affected by the new approach grows every year: PwC single out the sectors of health care and legal services. One of the latest examples of the dissemination of sharing services is the REGA Risk Sharing platform that offers an alternative to the traditional insurance market.
How does Rega work?
The REGA Risk Sharing project uses blockchain and smart contracts for the shared management of the risks. The project team is developing a decentralized blockchain platform that would enable the users to create associations and guarantee compensations to the other members of the community in the case of unforeseen losses. The reserve funds are formed from the voluntary contributions of the community members. The whole task of formalizing the agreements between users and calculating the risks is fulfilled by the algorithms and the smart contracts: thanks to the absence of middlemen, the sharing risk service can be significantly cheaper than the well-known insurance policy. The pattern proposed by REGA is fundamentally different from the traditional insurance market, both by philosophy and business processes. That is why the team prefers to use the term ‘crowdsurance’ to describe its activities.
How is it useful for the customers? What is RST token for?
From the point of view of the customer, the decentralization of the service means not just material benefits but also a possibility to participate in the collective management of the platform. The management will be based on the principles of the decentralized autonomous organizations: the holders of the internal tokens of the RST (Risk Sharing Token) platform will be able to vote for the parameters of the REGA patterns of risk management and in complicated cases. The token holders will be remunerated for this work with additional income, partly from the funds raised during the crowdsale of the RST tokens, and partly from the platform fund of unsold tokens. The RST token can also be used to pay for the crowdsurance products or as an investment in the reserve pools of the platform. To finance the project and develop the expert community, the REGA company plans to distribute RST tokens during a crowdsale that started on 15 October and will continue for a month. The price of 10 RST is 1 Ether. During the primary emission, 3 million tokens have been issued but only 50% of them are available for the crowdsale. Overall, during the ICO the developers plan to raise up to 100,000 ETH ($35 million).
At what stage of the development the platform is right now?
Sergey: Currently, the team proposes a pilot solution for the pet owners (Lexi Club), enabling them to insure the life and the health of pets and pay 80% less for their treatment. The REGA Lexi Club has concluded partnerships with Petdoctor, the service of online veterinary consultations, and with Kotiki i lyudi, the network of Moscow cat cafés where the visitors can communicate with cats. In the future REGA Risk Sharing plans to launch crowdsurance services for mobile devices, for drones, for commodities to be delivered with the help of the drones and, in the future, for the human life.
We believe that crowdsurance services will revolutionize the field of insurance in the nearest future.