Blockchain in Insurance

Why should you care?

Download the report

Blockchain in Insurance

Why should you care? A blockchain is essentially a record, or ledger, of digital events — one that’s “distributed” or shared between many different parties. It can only be updated by consensus of a majority of the participants in the system. And, once entered, information can never be erased. The blockchain contains a certain and verifiable record of every single transaction ever made. Evolving role of financial institutions as trust is decentralized Disrupt business models focused on extracting value when a transfer in value between parties occurs Shift in customers expectations as competitors set the standard of faster services

Given its ambitious potential to drive simplicity and efficiency through the establishment of new financial services infrastructure and processes, this technology is rapidly gathering momentum within the insurance industry.

VC-backed Bitcoin and blockchain fintech investment activity 2011- $3M 2012- $1M 2013 - $80M 2014- $299M 2015 -$474M 24+ Countries investing in blockchain 90+ Corporations have joined blockchain cosortia 4+ R3 consortium members focused on exploring blockchain applications in Insurance

New insurance processes and business models built on blockchain will call into question current orthodoxies and challenge multiple pain points that are prevalent across the value chain.

Current pain points Inefficient exchange of information Limited UW accuracy Fraud-prone Complex liability assessments for syndicates / reinsurance Use of middleman Fragmented data sources Manual claims review and processing We believe underwriting and claims processing are the dominant applications in the industry, with early adopters of blockchain investing primarily in these use cases.

Within underwriting, the technology can help reduce costs, improve risk assessment, and enhance client onboarding.

P&C insurance underwriting impacts Risk assessment 1-Enable trusted and verifiable provenance information 2-Provide transparency on existing or past insurance policies and claims associated with property and/or insuree 3-Enable shared interface with trusted third-party data providers Quoting 1-Improve accuracy of pricing through transparent quantification of risk and disintermediation of third-party intermediaries 2-Provide digital smart contracts to capture obligations and terms binding the insuree and insurer Onboarding 1-Enable capture of immutable, trusted, and verifiable information based on digital cryptography 2-Provide fast, seamless, and transparent experience in binding policy to insurees Benefits Efficient exchange of information Improved risk profiling Automation through smart policy

Similarly, the technology can fundamentally alter claims submission processes to reduce fraud and improve customer experience.

P&C insurance claims processing impacts Claim registration 1-Provide trusted and verified submission of claim data and/or documentation 2-Enable automated pre-assessment of the loss coverage against the policy 3-In case of smart assets/properties, enable claim to be securely and automatically submitted without human intervention 4-Automate process to engage repair and assistance providers in order to reduce response time and ensure use of preferred suppliers Claim assessment 1-Provide access to validated external data through trusted sources (i.e., oracles) 2-Enable automated determination of loss liability 3-Enable automated assessment of loss coverage for syndicates / reinsurance 4-Enable programmable escalation to human decision making in case of complex risks Payment and closure 1-Provide automatic payment to insurees through smart contracts 2-Provide immutable and transparent proof of claim settlement Benefits Simplified / automated claim submission Reduced fraud loss Enhanced customer experience and no manual inspection Automated compliance (i.e., real state registry, notary services, public records, etc.)

Download the report

Contact us

James Colaco

Soumak Chatterjee
Senior Manager

Alex Watson
Senior Manager

Vikas Singla

Did you find this useful?