The Blockchain's Impact on Insurance. InsurTechTO Nov 6, 2017

Transcription

1 The Blockchain's Impact on Insurance InsurTechTO Nov 6,

2 Selected Memb ers & Particip an ts + UNIQUE RECIPE FOR INNOVATION + OPEN COLLABORATION MODELS + GLOBAL INSURANCE EXPERT CROWD FLEXIBLE MEMBERSHIP OPTIONS MAKE INSURANCE BETTER! For organizations and Individuals wanting to solve insurance industry problems through Open Innovation & Collaboration with the aim to produce Minimum Viable Products (MVP). 1 TORONTO, Canada MUNICH, Germany Owned by

3 BLOCKCHAIN 101 2

4 Blockchain 101 Implementation of blockchain solutions generally build on a set of principles: Oracles Third party (agreed) source of truth Decentralized validation Redundancy Immutable storage Encryption Smart Contracts Established agreements that self executes 3

5 Innovation Project: Blockchain & Insurance W E E K 1 W E E K 2 W E E K 3 W E E K 4 Understanding Blockchain Customer and Business Problems Use Case Development Use Case Selection and Finalization Industry Lectures Identifying current industry pain points through surveys and research Define blockchain use cases using Design Thinking Develop a selection model and identify the Top 3 use cases for blockchain Project Participants: 4

6 Identified Use Cases for Blockchain & Insurance 1. Crop Insurance (and other forms of parametric insurance) 2. Travel Delay/Cancellation Insurance 3. "Cargo/Food Spoilage Internet of Things (IOT) Insurance - Marine Insurance" 4. Surety insurance 5. Group Benefit - Coordination of Benefit Claim process 6. Real time (24/7) Insurance/Reinsurance Business Ledgers 7. Warranty Insurance 8. Broker/Insurer platform for licensing confirmation 9. OpenLedger Claim Process 10. Anti Fraud Database 11. Insurance Incentive Tokens 12. Accidental Death and Dismemberment Insurance 13. Know-Your-Customer/Anti-Money Laundering (KYC/AML) 14. IOT enabled Personal Property (electronics, appliances, auto) Insurance 15. Robo advisers 16. Insurance Products tied to Credit Card Sales 17. Ancillary Services Related to Auto Insurance 18. Facilitation of Peer to Peer Insurance 19. Home Specification/Improvement Registry 20. Cyber Insurance for Blockchain 21. Identity Management Tool 22. Blue Ocean - Micro Insurance for Developing Countries 23. Sound Nuisance Insurance 24. Accommodation Sharing (Air BNB) - User Liability Insurance 25. Peer to Peer Property Damage 26. Basket of Goods 27. Crowdsourced Information Gathering 28. Onboarding & Oracle Accreditation/Insurance 29. Ride Sharing Passenger Liability Insurance 30. Cryptocurrency Friendly Ecosystem Among Insurers 5

7 Automated Flight Insurance 6

8 Flight Cancellation Insurance DEPARTURES TIME TO FLIGHT NO. GATE 0 7 : 3 5 F R A N K F U R T T H : 3 5 L O N D O N A K : 4 0 O T T A W A A K REMARKS C O N F I R M OC AN N TC EI ML LE O N T I M E E D E D 7

9 Flight Cancellation Insurance Easy Streamlined Purchasing Option (App or Web Based) Premium Transparency based on risk appetite for covered event TP Oracle used as data source Coverage triggered = auto payment to Insured Smart contract lapses. Premium is earned 8

10 BROKER/INSURER LICENSING PLATFORM 9

11 Broker/Insurer Licensing Platform REGULATOR REGULATOR REGULATOR REGULATOR REGULATOR REGULATOR REGULATOR 1 REGULATOR 3 REGULATOR 5 REGULATOR 7 REGULATOR 9 REGULATOR 11 REGULATOR Write Data into Blockchain DISTRIBUTED LEDGER TIME Insurer read INSURER 1 INSURER 2 INSURER 3 REINSURER BROKER MGA 10

12 Broker/Insurer Licensing Platform Fine-tuned access control High security/integrity of the data Reduced risk of non-compliance Reduced rates of error and omission Faster UW enabled 11

13 Group Benefit Coordination 12

14 Group Benefit Coordination So much work and such a complicated task Cathy got a massage Prepare Documents Insurance 1: 70% (her own) Insurance 2: 100% (husband) INSURANCE 1 INSURANCE 2 Check and response Check and response 13

15 Group Benefit Coordination BLOCKCHAIN TIME INSURANCE 1 INSURANCE 2 Cathy got a massage Enter Data via mobile Insurance Check Pay money 14

16 Group Benefit Coordination Real time communication process Transparency to all parties involved Agreement without intermediary Cost reduction, process efficiency Improved customer experience as a result of fewer touchpoints 15

17 # C o o k h o u s e l a b?...! 16