I have some questions regarding the concept and legality of a blockchain based peer-to-peer insurance platform.
A little background: The basic idea is for people being given the possibility to "insure" another users private property, whatever that may be in any specific case. The insurer would then have the opportunity to claim profits on a timely schedule, while the insured could claim the collateral provided by the insurer, if the requirements both parties agreed upon were to be met. The insurance contracts themselves would be initialized, maintained and eventually resolved through a series of transparent open sourced smart contracts. Smart contracts are essentially little programs, that run on the blockchain. The can be reviewed by anyone interested.
Is it legally necessary to formally record such a relation between two (or more) private persons? With the crypto space currently being so very unregulated, are there even laws applicable to this matter?
How difficult would it be for users of such a service to declare the income generated through anything related to the platform? Would this be regarded as a form of self-employment, would they have to register a company or any of the likes?
Would the platform itself, being the service provider, have to be registered in any way? The main aim of the platform would of course be income generation.
Would we need to explicitly declare a disclaimer to prevent being sued if a user considers the rejection of their claim unjust? Since this is a peer-to-peer system, the platform itself will mostly be uninvolved in the decision process. Instead this will be the duty of an independant third party comprised of individual users.
Could the platform be held accountable in case of lost user funds? Only if the platform were at fault? (as in, did the platform's source code cause the issue?)
Can a strictly blockchain based platform even be sued? Only if it is legally registered?
Is there an exact legal counterpart as to the role the platform would assume in this system? It provides the framework upon wich the insurance policies are designed, contracts are established and payouts are issued. It does not directly take part in insurance business.
Feel free to let me know, if any further clarification is needed.
Edit: Since jurisdictional specification was suggested, let's assume it to be Switzerland and the U.S.A.