As we all know, the reason why the traditional insurance industry has a high capital threshold is that insurance companies need a lot of capital to undertake and redeem insurance business. High margins make most people forced to accept the exploitation of insurance companies. The application and development of blockchain technology (smart contracts) can play the role of an insurance company as well. Individuals only need to provide a small deposit to insure the policyholder. In this case, the utilization rate of funds will be more sufficient, and the squeeze on insurance companies will be further reduced.

As we all know, the reason why the traditional insurance industry has a high capital threshold is that insurance companies need a lot of capital to undertake and redeem insurance business. High margins make most people forced to accept the exploitation of insurance companies. The application and development of blockchain technology (smart contracts) can play the role of an insurance company as well. Individuals only need to provide a small deposit to insure the policyholder. In this case, the utilization rate of funds will be more sufficient, and the squeeze on insurance companies will be further reduced.