6022 Protocol

The 6022 Protocol, a Simple and Innovative Collateral Solution for Auto/Motorcycle to Capture the Market of Digital Natives with Insurance Mechanisms That Resonates with Them

The motor insurance market faces two major challenges regarding young drivers:

• A motor insurance market under pressure, desperately in need of renewal. Insuring young drivers is often viewed as a 'necessary evil' by insurers, while current underwriting solutions such as telematics or profiling are insufficient, overly costly, and intrusive.

• New digital generations and insurers speak increasingly different languages, further widening the gap in trust. Crypto is the “New Normal”

6022: an innovative risk selection solution using collateral for auto/motorcycle insurance, where loss ratio is closely linked to driver behavior

• In 2000, A large insurance company in France demonstrated the relevance of this concept through a system of security deposits for young drivers in exchange for reduced premiums. This initiative proved that requiring a security deposit effectively targeted the right risk profiles (i.e., conscientious individuals with an ability to think ahead) at the time of subscription, leading to a significant reduction in claims frequency of 20-30%. Unfortunately, the logistical burden of managing paper checks led to the discontinuation of this promising initiative.

• The 6022 protocol modernizes and optimizes this proven approach by enabling the use of collateral deposited transparently on a blockchain, thereby strengthening trust between insurers and policyholders. 6022 complements the insurance contract by providing an additional guarantee through collateral deposits. Collateral does not replace the insurance contract.

The mechanisms of the 6022 protocol are simple:

1. Target clients to start: young drivers who already own crypto and are therefore familiar with collateral. No need to explain the concept.

2. Collateral deposit at subscription: A collateral deposit in cryptocurrencies (e.g., equivalent to 10-30% of the premium) is made in exchange for reduced premiums and/or broader coverage offered by the insurer. Proof of collateral deposit will serve the insurer as an additional supporting document. 

3. Strong incentives for responsible behavior over time:

   • Collateral retrieval: The insurer may retrieve the collateral under conditions explicitly stated in advance (e.g., fraud, two claims within x months, late claim reporting, etc.). These conditions typically align with the traditional portfolio monitoring practices carried out by insurers

   • Lock-in period: A "lock-in" period of 2 to 3 years that effectively limits churn among good profiles and allows the insurer to optimize cross-selling opportunities.

   • Reward system: The collateral will accumulate "rewards" over time, which can only be unlocked at the end of the contract if the collateral has not been retrieved in the meantime. Rewards will be distributed to all clients of the insurer, funded as a fee paid by the insurer (e.g., 2% of the collateral amount)

The benefits for Insurers are clear:

• Expected Reduction in Claims by 20-50%.

• Enhanced Brand Image through Innovation and Adaptation to New Consumer Behaviors.

• Increased Cross-Selling Opportunities for Good Profiles.

• Opportunity for Insurers to Use Their Stablecoins for Concrete Use Cases.

Simple and Controlled Implementation

The 6022 protocol, developed by Swiss 6022 and its expert founders (Arnaud Vincent, PhD Mines Paris, and Franck Pivert, ex-Allianz & Wakam), already benefits from:

• Complete technical and legal validation.

• Positive opinion from FINMA (Swiss regulator) to launch the protocol.

• Easy integration without major modification of the subscription process: the collateral deposit is just an additional supporting document to be added by the distribution intermediary.

Strong Market Interest Already Present:

• Major players actively studying the solution: Banks, Insurers (confidential names), Reinsurers (confidential names), and digital brokers.

• Possible launch as early as Q2 2025.

In a context that is increasingly favorable to cryptocurrencies, the window of opportunity is open for insurers willing to position themselves as pioneers in this new growth area, combining technological innovation with risk management.