What are the must have features for DNProtect.com?

carob said:

Also sooner or later people will try to game the system, allow the domain to be "stolen" by a partner, and then the "buyer" claims the insurance when the domain is taken back.

Click to expand...

Insurance fraud is a thing, but that is why the insured domains will be held at trusted registrars with special arrangements around MaxLock of the domain.

As we engage re-insurance partners and secure the requisite insurance licensing, e.g. through an acquisition of an existing insurance agency, we are spending a lot of time on risk mitigation strategy.

This is definitely a doable business model. Given the complexity of the risk scoring aspect, the project is moving along rather swiftly.

Preview here of some developments:

Logo Updates:
https://invis.io/EGUES4XC86J

Home:
https://invis.io/K5UES49QMD3

Domain Insurance
https://invis.io/9DUES4OTZNQ

DNP Score
https://invis.io/XQUES4QAJR6

Project team meets tomorrow with engineering for the first time. @bhartzer is will be getting down to the nitty gritty of translating risk assessment methods into software that scales. We'll see how that goes!

In the meantime, thanks @Ala Dadan. We welcome input as always as we co-create what could end up being a useful tool for getting domain buyers over the hump when it comes to making large purchases.

The DNProtect.com project team met this morning.

We have a dev schedule -- live before year-end with public beta and launching at NamesCon in January. The project has A-players on it.

The main gap we are working to address now is the need to acquire or partner with an established insurance company that is licensed in Property and Casualty.

If anyone knows of an insurance agency that is interested in the Internet, please PM me as we explore how to add regulatory compliance for insurance products.

As for geography, it could be anywhere in the world but put a P&C insurance agency in Texas would be nice!

sooooo, here are some off the wall questions to ponder

what happens if internet died

and the servers didn't serve

then all your names disappeared

would insurance cover that?

is a policy transferrable from one owner to the next?

if so, is that premium at same rate prior to sale
or
at an increased rate per new sale price to new owner … should they wish to accept the transfer?

if premium was paid in advance and the name expires, can you get a partial refund or credit?

are domains that become websites included?

would a policy cover that website liability?

just throwing somethin in the air, with the smoke from the inhale

imo...

biggie said:

sooooo, here are some off the wall questions to ponder

what happens if internet died

and the servers didn't serve

then all your names disappeared

would insurance cover that?

is a policy transferrable from one owner to the next?

if so, is that premium at same rate prior to sale
or
at an increased rate per new sale price to new owner … should they wish to accept the transfer?

if premium was paid in advance and the name expires, can you get a partial refund or credit?

are domains that become websites included?

would a policy cover that website liability?

just throwing somethin in the air, with the smoke from the inhale

imo...

Click to expand...

First of all, this is not rocket science. Cyber-liability policies have been around for a while. If you look at a typical Cyber-Liability policy coverage summary (see attached example), you will find that domains are not covered. Why is that? I don't know but it seems like the insurance underwriters did not want to touch that one.

The scope of coverage was discussed earlier in this thread:

https://www.namepros.com/threads/wh...tures-for-dnprotect-com.1156889/#post-7425016

The detailed policy drafting is still in progress but the essential premise is focused on the prospect of losing the domain name, e.g. in the hypothetical case where NamePros lost NamePros.com, what would be the cost of re-branding to another domain name due to loss of the domain name.

The point should be obvious that for a domain owner whose business is substantially online, the loss of a domain name would have a switching cost that is likely far greater than the appraised value of the domain name by itself. DNProtect is aimed at managing that risk through:

- Risk Assessment
- Monitoring
- Insurance

Based on due diligence to date, I am confident that there is a worthwhile opportunity to add value in all 3 areas and that by integrating all 3 into one brand we will allow more people to avoid catastrophic loss due to being insufficiently equipped in any one of those areas.

Insurance is an extremely complex field. Most insurance types are regulated at a state level, which means the company would likely need to to licensed & regulated in every US state it is offered in.

I predict it would be hard to find an underwriter or partner for this as it is not like car insurance, life insurance, homeowner's insurance, etc. It is not a product with massive demand that is easily understandable.

If you lose your car the loss is your car. It is a pretty defined value. It can be easily quantified.

When it comes to a domain, loss of business, and other issues that is extremely subjective and much harder to quantify.

Regardless, best of luck.

Brad

Rob Monster said:

First of all, this is not rocket science.

Click to expand...

geez, didn't know that
but, then again.... I ain't the brightest bird in the tree
even though I once had a license to sell insurance

it pretty much reads like, you and the crew are trying to launch something else into cyberspace

so, some kinda science had to be involved

unless yall just throwing it up in the air, trying to see what floats

but anything you think, that may be obvious, may not be so to all
that's prolly why, I put forth some questions, that were... off the wall.

Good Luck!

imo...

biggie said:

geez, didn't know that
but, then again.... I ain't the brightest bird in the tree
even though I once had a license to sell insurance

it pretty much reads like, you and the crew are trying to launch something else into cyberspace

so, some kinda science had to be involved

unless yall just throwing it up in the air, trying to see what floats

but anything you think, that may be obvious, may not be so to all
that's prolly why, I put forth some questions, that were... off the wall.

Good Luck!

imo...

Click to expand...

No, not off the wall, actually, and all appreciated since that is why this thread is useful -- to engage the dialog with those who will co-create, and that includes creative destruction, or vulnerability testing. It is welcome.

As for insurance expertise, part of the logic for seeking to acquire an existing insurance agency in property and casualty is to be able to fast-track the learning curve, and compliance.

In terms of practical application, I think key for us is to stay in our lane. We know a lot about protecting domain names. We also know a fair amount about how to detect problem with digital presence.

The domain industry should be very happy when DNProtect becomes available.

For one thing it should make it a lot easier to complete proper due diligence about a domain. However the real breakthrough comes from getting regulated banks to once again be able to lend against domains!

>> However the real breakthrough comes from getting regulated banks to once again be able to lend against domains!
Agreed, if the domain (and website) is covered for a certain amount, and the due diligence and underwriting is solid, there really shouldn't be any reason why regulated banks wouldn't lend against domains.

>> When it comes to a domain, loss of business, and other issues that is extremely subjective and much harder to quantify.
It's tougher, sure, but not out of the question. How much did you spend on a billboard with the domain name on it? How many misdirected emails will you lose? How much did you spend on business cards? How many years to build your brand and how much advertising was spent each year? How much money and traffic does your website (the domain name) get each day? Average CPC for every keyword times the search volume.

Rob Monster said:

However the real breakthrough comes from getting regulated banks to once again be able to lend against domains!

Click to expand...

You have many banks now that will loan against securities.
It is called securities-based lending or portfolio lending.

These are based on highly liquid, easily understandable assets (stock, bonds, precious metals, ETFs).

You can generally already get a loan now if you run a successful business, even if that business is based on domain sales.

If you are talking about getting a loan based on the underlying value of a raw domain, from a major bank or lender, I doubt that is going to happen.

I highly doubt major banks like Chase, B of A, Wells Fargo and others are going to introduce a new product with such tiny demand. How many people in the general public even own domains, never mind any that are valuable?

Maybe some random boutique bank somewhere might consider it.

Brad

bmugford said:

You have many banks now that will loan against securities.
It is called securities-based lending or portfolio lending.

These are based on highly liquid, easily understandable assets (stock, bonds, precious metals, ETFs).

You can generally already got a loan now if you run a successful business, even if that business is based on domain sales.

If you are talking about getting a loan based on the underlying value of a raw domain, from a major bank or lender, I doubt that is going to happen.

I highly doubt major banks like Chase, B of A, Wells Fargo and others are going to introduce a new product with such tiny demand. How many people in the general public even own domains, never mind any that are valuable?

Maybe some random boutique bank somewhere might consider it.

Brad

Click to expand...

Back in 2009 I was in a syndicate that bought the domain Hobbies.com from Toys R Us out of bankruptcy. Back then it was possible to get a bank loan at a low rate. Things changed since then due to changes in regulatory oversight. However, as domains become a more respected asset class, it is actually inevitable that banks will lend against them. For many businesses, your intangible asset (website) is actually safer and more essential to continuity of operations than some Class A office space. Banks make money by lending with a spread. Banks need someone to lobby to change the law. We'll get to that. One step at a time. I am actually interviewing a DC attorney/lobbyist this week.

Rob Monster said:

Back in 2009 I was in a syndicate that bought the domain Hobbies.com from Toys R Us out of bankruptcy. Back then it was possible to get a bank loan at a low rate. Things changed since then due to changes in regulatory oversight. However, as domains become a more respected asset class, it is actually inevitable that banks will lend against them. For many businesses, your intangible asset (website) is actually safer and more essential to continuity of operations than some Class A office space. Banks make money by lending with a spread. Banks need someone to lobby to change the law. We'll get to that. One step at a time. I am actually interviewing a DC attorney/lobbyist this week.

Click to expand...

That is fine, but you don't need to convince me.

You need to convince major banks with market caps of hundreds of billions that it is something they should care about, that has enough demand and upside for them to justify it.

It is not just going to be a regulatory issue. It is a demand issue.
Very few people actually own super premium domains.

Good luck.

Brad

bhartzer said:

there really shouldn't be any reason why regulated banks wouldn't lend against domains.

Click to expand...

This is simply not true.

Banks won't lend because a) it is hard to valuate a domain asset; b) domain assets are very illiquid.

bmugford said:

If you are talking about getting a loan based on the underlying value of a raw domain, from a major bank or lender, I doubt that is going to happen.
Brad

Click to expand...

One very important challenge that the domain industry faces in working collectively to make the pie bigger is overcoming chronic MYOPIA.

Just because it did not happen before, does not mean it can't happen or won't happen.

Even mighty Verisign with their .COM franchise is actually a relatively tiny business compared to the importance of the underlying namespace that they manage.

Lending against domains is not about premium domains. If an online brand is an essential operating asset for a business to function, it becomes logical collateral for a bank to lend against.

And yes, it might start with boutique banks before it moves into the realm of FDIC-secured depositories but I see it happening.

As it is, the IRS values domains for contributions. I have seen this in action too. So, clearly there is some legitimate basis for discussion around domain valuation as an enterprise asset.

There is absolutely a market for cash-out lending at hard-money rates. Epik has never charged interest for the domain loans we do, but the demand is there. So, I prefer to partner and outsource that scenario.

We have started working with a NYC private merchant bank for folks who need cash-out domain loans in addition to our popular solution for interest-free domain loans.

If folks need help finding a lender for their domains, happy to advise. It helps a lot if either (1) the domains are liquid, or (2) the domain is an integral asset of an established online business.

How are things moving along.

equity78 said:

How are things moving along.

Click to expand...

We are on track to be live in beta before year-end and commercial launch in January in time for Namescon.

The high level spec is here:

https://my.armored.net/index.php/s/2LTcLkCLyJWk7ci

The other major theme is securing the alternative risk transfer provider that stops short of having to become an insurance company.

Overall, on track.

@Ala Dadan - DNprotect.com needs a landing page.