ShineChain Whitepaper

Background of ShineChain Global Mutual Assistance Protection
Protection of health and wellbeing is a fundamental need of human beings. In life insurance, accidental
death, serious disabilities, as well as major diseases especially cancer, are among the top priorities in
protection. Problems and concerns specific to this industry are listed below.
1.1 Though the risk of personal accident is ubiquitous, many people recognize the low rate of
occurrence and unreasonable pricing of relevant insurance products and chose an
opportunistic approach, living without insurance. For example, global aviation flight numbers
reached 4 billion people in 2016. However, the aviation accident insurance premium was only
USD 1.2 billion and the average per capita was only USD 0.30. This means that less than 10%
of the passengers were insured.

1.2 The rate of major diseases, especially cancer, has soared due to environmental pollution,
food safety issues, climate change, and unhealthy lifestyles.
Based on the Official Health Statistics Yearbook, the rate of “having at least one major disease” before the
age of 70 is around 45%, which continues to increase for people between the ages of 70 to 80. Chronic
diseases and malignant tumors are becoming life-threatening factors in the field of health and wellbeing.
In 2015, the total number of newly diagnosed cases of cancer in China is expected to be 4.292 million and
the expected number of deaths is 2.81 million, which is in line with the actual rate of 12,000 diagnosed
cases of cancer per day and 7,500 cancer related deaths per day. According to 2015 data, eight people are
diagnosed with cancer every minute and five will have died of cancer.

1.3 Commercial insurance is expensive and has operational risks, including payment of a large
number of sales commissions and operational discrepancies in the management and use of
capital at insurance companies.

1.4 Operations of traditional centralized mutual assistance protection communities are not
transparent,and current technology does not permit verification of a fair, just,and open
process,contributing to difficulty in developing a trust-based relationship between community

1.5 Insurance fraud is a major problem faced by all centralized institutions (including
insurance companies and mutual assistance communities).

1.6 The protection of client privacy is a common concern for all centralized
institutions(including insurance companies and mutual assistance communities).

1.7 Due to inflation, delay of claims payment decreases the actual purchasing power of the

With the development of blockchain technology, these problems may be mitigated. After long-term
extensive research and exploration of global decentralized mutual assistance protection communities,
ShineChain has emerged. The core members of the team have extensive experience in insurance and
blockchain development. With the exchange and trust mechanisms built into blockchain and smart
contracts, ShineChain revolutionizes all preexisting commercial models.

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ShineChain Whitepaper