Identity Insurance Consortium

for Trust in Digital Trade

Commerce relies on trust. Blockchains are disintermediating trade, enabling millions of new transactions every day and boosting the global economy. But participants face new risks: how can we trust blockchain trading partners? Without real-world information about them, how do we know who we’re dealing with? We need to know their identity.


Online identity for real-world trade

Why can’t we simply use the same proofs of identity online as we do in the real world?

Existing online systems, such as eBay and Visa, bundle solutions to these problems: they integrate identity systems, where users’ private data is shared only with the system, and use a mix of indemnity and sanctions to maintain customer confidence.

Blockchain-based trade needs identity insurance: a way to prove one’s identity safely that is indemnified against fraudulent use.


Why insurers?

Whom do customers trust with sensitive personal data?
Who is skilled at risk management?
Who is regulated to ensure they can meet claims?



How identity insurance works

An individual provides evidence of an assertion to an insurer, who sells them an insured fact. The individual assembles a set of facts, which may come from different insurers, into a profile. The profile is used by a decision-maker to make a decision.

The decision-maker can claim consequential damages against false insured facts. For example, a customer pays for an order, does not receive it, and then finds that the merchant’s insured name and address are false: the customer can claim damages from the insurer.

Identity insurance works with any practical identity management scheme for the blockchain, including leading systems such as Sovrin and uPort.

For more details, see See Vinay Gupta’s talk and slides from Techruption in July 2017.


The Consortium

The Consortium aims to coordinate the actors needed to build out this new industry to design digital identity solutions, bring identity insurance products to market, and develop the wider ecosystem of providers who can build on identity insurance.

We will develop three main streams of business:



Issuing identity insurance policies.


Managing risk of mis-identification.


Packaging insured facts from multiple insurers.


Become a member