Umbrella Coin – Automating Insurance Payouts with Smart Contracts

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The market for alternative coins has been growing at a dizzying rate. Many ICOs (Initial Coin Offerings) now raise tens of millions or even hundreds of millions of dollar equivalent value in their tokens. Healthcare is one area where blockchain technology is seeing major ICO growth.

Umbrella Coin has produced a coin called UMC which is built on the Ethereum protocol. It’s goal is to become a major healthcare company based on the block chain technology rather than traditional financial structures.

Umbrella Coin

Umbrella Coin can reduce cost

Umbrella Coin has several revolutionary innovations that no health care company on the market can match. The first innovation is that the claims process is governed by the universe of other Umbrella Coin owners. They vote through the Ethereum protocol on whether any claim should be paid out or not. They are interested in a sound system that is fair and can grow, not necessarily in the most profitable system.

This radically changes the traditional model of claims payments. Under the current methodology, health insurance companies have an extremely detailed checklist of approved treatments and pharmaceuticals for each diagnoses. They have a bureaucratic structure with lawyers, claims management professionals and very few doctors to overseas the claims process. The people making the decisions are not doing it in the interest of patients but rather for the bottom line.

The second huge innovation is the cost structure. Under the legacy bloated system results in many good claims that are rejected and many wasted costs. Additionally, the health insurance companies spend millions in sales and marketing to acquire new customers. This ultimately needs to be made up by raising premiums for current customers. Overall, prices continue to dramatically rise in this system.

Under the Umbrella Coin system, this all changes. Since there is no costly claims process, no bureaucracy, no million dollar marketing campaign and no expensive overhead, claims can be far more generous for less costly. They can dramatically reduce costs and be more efficient.


The overall structure is a little complex but makes the entire system extremely coherent. A new client first takes some of the Umbrella Coin from their wallet and devotes it to a “Float” pool. That allows the client to be covered under the health plan. After a small lock-out period, there is a maturation period under which they are covered by the plan. As time passes and no claims are required, some of the funds may be withdrawn with a small penalty. At the end of a contract period, there is no more penalty at all.

If a claim is made during the maturation period, the community decides on the validity of the claim. If it is approved, the Coins are withdrawn from the Float and distributed to the individual. If the claim is rejected, no Coins are disbursed.


Umbrella Coin also has the team and background to execute on the vision they have outlined. They have a number of software developers from the largest software and insurance companies in the world. They have decades of experience in software development and education from some of the finest engineering and computer science programs. Additionally, Umbrella Coin has already started to build out its sales and marketing team to promote the use of the product.

Blockchain Health Care Review is a leading hub of information about companies, technology and innovations around health care tech using the blockchain.