Benefits have long been a crucial partner of compensation. Companies offer them because they significantly affect productivity and performance. Yet, only about one in four workers worldwide are actually employed with a company. The alternative workforce—composed of freelancers, solo entrepreneurs, professionals and other informal workers—don’t have the comfort of having an employer arrange benefits for them.
The rising alternative workforce does not underestimate the advantages of having benefits like health care and life insurance. They do understand its importance, and that is why some of them resort to self-insuring to enjoy benefits. However, self-insuring is expensive. Benefits providers are able to offer them at low prices to companies because of large contract sizes that utilize economies of scale and established business reputations. To offset the higher costs and risks involved in covering alternative workers, providers price their services higher to them because to tap into that segment means to individualize benefits plans to an innately decentralized market.
STORM Technologies, the Philippines’ largest benefits technology firm, has been in the business of individualizing employee benefits for over a decade. Across the different industries they serve, it is clear that there is value in empowering workers to have control over their benefits and to have plans that meet their individual needs. STORM’s solution continues to scale. The problem now is how to extend it to the alternative workforce.
ALLCARE, a decentralized benefits platform powered by the ALLCARE token (ALCR), is a solution to this. The ALCR token will be an ERC20 token on top of the Ethereum blockchain. Alternative workers, by being a member of the ALLCARE platform, will get a core benefits plan that includes basic health and life insurance coverage.
The primary utility of the ALCR token, however, is to enable an alternative worker (Benefits Seeker) to purchase Benefits Access Rights (BARs) on the ALLCARE blockchain. Each BAR is unique to a benefit offered by a Benefits Provider that is also on the ALLCARE platform. Purchasing a BAR gives the Benefits Seeker the undeniable right to avail of the underlying benefit at a published price using more ALCR or fiat.