DoubleJack, a global fintech startup, has revealed plans to establish a captive insurance company for all providers of its new online lottery sites to register and certify with the firm.
The captive insurance company will manage and cover the risk of the jackpots and will allow DoubleJack to raise the jackpot sums to much higher levels.
Both London and Jersey are on DoubleJack’s shortlist for its captive insurance domicile.
Falk Maschitzki, co-founder of DoubleJack, suggests if you want to operate an igaming system responsibly, then DoubleJack needs to also be responsible to the players.
He explains that DoubleJack is already offering the services of a wealth management firm to guide the lucky winners on how to retain their winnings and achieve their objectives with their new found wealth.
However, Maschitzki adds: “Despite their highest aspirations for winning the jackpot, realistically winning the jackpot is unlikely, even if we are afraid to admit it. Therefore, the majority of our community will benefit much more from our revenue-sharing, passive income model than from actually winning the jackpot.”
He highlights that this is where the captive insurance kicks in.
Maschitzki explains: “We are creating our own insurance company and an insurance-linked securities (ILS) fund to cover our entire igaming ecosystem while linking it to the blockchain to speed up the payout processes and make them completely transparent.”
“Managing risks is what insurance companies do, and the lower the risk the higher the profit margins. We would love to let our growing community participate from those ‘winnings’’ as well so that at the end of the day we will see everyone winning,” he adds.
This comes after DoubleJack announced the launch of a lottery platform as well as a native Tron-based TRC20 DJACK utility token.
DJACK, which launched on 19 February, will serve as an insurance and ILS-backed token for online lottery.
DoubleJack says it aims to establish the token as the standard unified currency in online lottery.
The fintech is set to create an insurance company and ILS fund to partner with traditional reinsurance companies in this branch.
On how its captive insurance will work, Maschitzki explains that the first risk class is going to be for the igaming market, which means insuring the jackpot winnings in collaboration with other reinsurance companies
He notes that the larger jackpots will be insured through the establishment of the ILS fund.
Maschitzki suggests that the higher the funding with DoubleJack’s latest utility token, the less dependent DoubleJack’s need to be on external insurance entities to back our lotto system.
He explains: “We’re looking at a further rollout of other insurance risk classes in order to entrench ourselves as legitimate in the igaming market. With the help of blockchain technology, the entire play/win/payout processes can be automated to a real-time scenario, which is novel in the igaming sector. It will also enable geo-blocked users around the world to participate in our lottery.”