ECO-SYSTEM CONCEPT PAPER VERSION 1.0 Catapulting Insurance into the Digital Age
Foreword Insurance Selling a Smart Recent improvements in blockchain technology, such as improved throughput rates, improved security features and enhanced smart contract capabilities have enabled blockchain technology to cater for much more than just crypto asset transactions. The door is open for applications across numerous other industry sectors. Insurance always was a very likely candidate given the inefficiencies and traditional processes in what amounts to an almost USD 5 trillion p.a. industry. Technological progress in IoT devices creates more and better oracles. Improvements in the availability of electronic data means we are now able to create an interconnected network that leverages all these technologies in a unified way to benefit insurance manufacturing, sales, management and pay-outs. In our general whitepaper we have provided an overview of how Inmediate will create an eco-system and network for the insurance industry to transact smart insurance in. The eco-system will help the industry to overcome several operational hurdles and bring significant benefits to both the insurers, their distributors and customers, as detailed extensively in the general whitepaper. Not withstanding the hurdles we will face such as the complexity of the technology, the structure of the process; its compliance with highest standards of control and governance; and reliability, we are confident that we will soon be able to deliver on the promise of insurance with lightning speed, greater efficiency, crystal clear transparency and omnipresent availability. Since insurance is a regulated financial services industry we do not have a free hand in the way we do this and we will work closely with the Singapore regulator to ensure compliance with all regulatory requirements. We hope you will enjoy reading this paper which is meant to share a little more detail about our our design for the Inmediate eco-system. Since this will be an eco-system that needs to be used and endorsed by the insurance industry, nothing of what we write here is definitive. Insurance eco-system participants will have the opportunity to contribute to the final design architecture. This paper is merely meant to share our thoughts and intentions with partners and participants so as to get a deeper understanding of the direction in which our solutions are heading. 1 The objectives of Inmediate is to connect all these technologies to achieve their full potential and to create the world s first smart insurance eco-system Jeremiah Tan - COO Nelius Strydom - CTO
Table of Contents Foreword 1 Pay-out claim event 9 Private Blockchain (Smart Policy) 9 Private Blockchain dapp 9 Eco-system diagram 3 dapp description 10 Eco-system swim lanes 4 System and Technology 11 components of a smart insurance contract 6 Smart Policy Templates (SCPT) 6 Back-end system (BES) DIT token service charges 12 Glossery of Abbreviations 13 2 Selling a smart contract 7 Sales platform 7 Sales Platform (Payment Gateway) 7 updates 15 Monitoring a smart contract 8 Private Blockchain (Smart Policy) 8 Oracle Configurator 8
Eco-system diagram The eco-system diagram provides a simple overview of the eco-system configuration. Notable is that we intend to equip the eco-system with 2 blockchains one private blockchain for recording smart contract policies (shard on the Zilliqa blockchain) and a public blockchain for recording ZRC20 compliant payments. Insurance Insurers Zilliqa Public Blockchain Selling a Smart Sales Platform Stack dapp Blockchain Oracle Stack Oracle Oracle Oracle API APPS IoT 3 Sales Portal Back-End System Private Blockchain Oracle Configurator External Oracle Sources dapp Blockchain Consumers Distributors Sales process: 1. Select smart contract policy Pay-out process: Oracles trigger smart contract policy pay- 2. Select coverage amount outs on the private blockchain. Consumers 3. Pay in fiat, DIT or other cryptocurrencies 4. Transaction records available in private blockchain dapp (for customer and for insurer) 5. Register smart contract policy in private blockchain
Desription and Insurance Selling a Smart Eco-system swim lanes In the swim lane diagram on the next page we depict the creation of a smart contract policy template, the sales process (a customer buying a smart contract policy), the monitoring of a smart contract and the pay-out process (Smart contract executes the pay-out to the customer). The horizontal panes represent the sequence of events in the whole process. The events are numbered to explain the process flow. The verticals in this diagram represents the components in our eco-system and depicts the process/systems that perform the steps. 4
Customer Inmediate Sales Portal Inmediate Payment Gateway Inmediate dapp Smart Blockchain Inmediate Oracle Configurator Smart contract policy template - setup 1 New smart contract template is uploaded in the Inmediate backend Inmediate Backend Inmediate backend creates the trigger conditions and endpoints in the configurator for the smart contract policy benefits 5 The dapp instructs the backend to host the new smart contract policy template upon succesful payment by the insurer Insurance company pays Inmediate in DIT tokens for hosting their smart contract policy template 2 4.2 DIT 3 4.1 The service charge is notified to the dapp and the DIT tokens are transferred to the Inmediate wallet Inmediate Wallet - Public Blockchan Sales Monitoring Customer request a quotation for a smart contract policy 1 Customer pays for the policy in Fiat Currency 2 (the customer has the option to pay between Fiat, DIT and other cryptos) the payment status 3 FIAT DIT BITCOIN 4 Inmediate Backend Instructs dapp to create and deploy smart contract 5 The dapp deploys the smart contract to the private blockchain 6 Smart contract meet the clame conditions and the pay-out event is triggered. Smart contract monitors the pay-out events by making multiple outbound calls to the oracle configurator Configurator fetches data from external sources and supplies the smart contract to arrive at a consensus External Sources 5 1 2 Pay out Customer is notified of the payment 4 Pay-out amount tranferred to the customer wallet 2.1 Pay-out amount tranferred to the customer credit card / bank account 2.2 3 dapp perfoms the tranfer of payment dapp shares the pay-out status with the Inmediate sales portal 2 Pay-out Event Smart contract authorises the pay-out 1
components of a smart insurance contract Insurance Smart Policy Templates (SCPT) SCPTs are created per product type for all insurance companies to use. The SCPT will be made up of 4 standardised components: Details of Enforcement (DoE) The details that will be written into an enforced smart contract policy are put together from many sources customer details, payment details, declarations, etc. Selling a Smart Terms of (ToC) Details of Enforcement (DoE) Pricing Determinants Terms of Availability (ToA) Some flexibility will be introduced to allow differentiation Pricing Determinants The price of the smart contract policy can be determined in 2 ways an API call with the insurer or through a pricing algorithm that is provided by the insurer. In some cases, the pricing algorithm may require information that can be obtained through oracles. 6 within product types (e.g. pricing algorithm/pay-out details). Terms of Availability (ToA) Terms of (ToC) The terms of the contract will dictate: Coverage event The smart contract policy (being immutable) will not be available perpetually and needs to expire at a certain point in time. Some examples of these ToAs can be the number of policies sold, a certain timeframe, etc. Pay-out triggers and conditions Oracle feeds necessary to identify, monitor and trigger the event Termination rules and pay-out details New SCPTs may require a creation of an oracle linkage sub- Back-end system (BES) The 4 SCPT sections will be uploaded as a SCPT for a specific product type on the back-end system. The design of the SCPT will be done in conjunction with the insurance participants in the eco-system. set as well as its consensus protocol.
Selling a smart contract Insurance Selling a Smart Sales Platform In the BES, Product Specific-Smart Policies (SCP) are created individually by populating the 4 sections mentioned previously. The sales platform is now populated with smart contract policies by the insurers. From this list, the customer can now select and buy the smart contract policies. After selecting a smart contract policy, the customer fills in information to determine the price and coverage, which is obtained either through a pricing API call with the insurer, or Fiat Currency The customer enters his credit card details and pays through the payment gateway. DIT and ZRC20 compliant cryptocurrencies The customer is now connected to our dapp and executes a transfer (through a smart contract) from the customer s wallet (which has been created from the start to hold DIT) to the respective IC s wallet and recorded on the Zilliqa Public Blockchain (ZPB). through a pricing algorithm provided by the insurer. Before confirmation, any additional mandatory data and agreements can be obtained, after which a customer account will be created. Sales Platform (Payment Gateway) The customer can now choose a preferred payment method: Other cryptocurrencies The customer will be provided with a wallet address for the relevant cryptocurrency Moving forward based on a successful payment/transfer, a smart contract policy is now created on the Private Blockchain and will contain: 7 Fiat Currency DIT and ZRC20 compliant cryptocurrencies Other cryptocurrencies 1. Policy Header User details Policy documents 2. Monitoring details All payment responses will be consolidated in the Sales Plat- 3. Claims Header form level and disseminated to the dapp. Claim triggers Payment authorisation
Monitoring a smart contract The two main components involved in the monitoring of payout events by the smart contract are: Insurance Private Blockchain (Smart Policy) The smart contract policy verifies all the conditions of the pay-out rules through oracle configurator inputs and consensus protocols. The smart contract triggers the pay-out event upon concensus Smart Selling a Smart The smart contract will use the inbound oracles to fetch the data from the external source. If the termination rule in the smart contract is met, the smart contract terminates (i.e. pay-out or expiration). Oracle Configurator For each request, the oracle configurator sends 2 references dapp Smart s monitoring the pay-out events trough inbound and outbound oracle cells 8 back to the smart contract policy: The actual result from the external source The external source address itself. This way the smart contract can validate the credibility of the result from the oracle. Oracle Oracle Oracle Oracle Configurator The links or sources in the smart contracts are configured at the Product Specific-SCP level.
Pay-out claim event Private Blockchain (Smart Policy) The smart contract verifies all the conditions of the pay-out Depending on the contract details, pay-out can take place through: Insurance Selling a Smart rules through oracle configurator inputs and consensus protocols, and when met, authorises the payment. The consensus protocol can include (but is not limited to): Binary answer from the oracle. Link to external source used by the oracle. Specific event rules (i.e. % of positive results from oracle sources) All the smart contract policy conditions will be configured Fiat currency The private blockchain dapp instructs the payment gateway to execute the payment back to the customer through the credit card information used during the purchase. Cryptocurrency The public blockchain dapp executes the transfer function within the ZPB from the insurance company s wallet to the customer s wallet. 9 with an API endpoint to the oracles instructing the smart contract policy to look for the inputs whenever it needs to execute the validation rule for that particular condition. Smart contract policies will use the inbound oracles to fetch the data from the oracle configurator to arrive at a consensus. Upon successful consensus, the smart contract will authorize the payment to the customer through the dapp. Private Blockchain dapp With the information that is stored on the smart contract policy, we are able to determine the customer info, payment source and denomination.
dapp description Insurance Selling a Smart The primary role of the dapp is to provide user interfaces to the Private Blockchain. The dapp is distributed across both the private and Zilliqa public blockchain network, enabling the following functions to be carried out through the dapp: 1. The dapp provides an interface for the insurance companies to access company specific restricted information like sales, customer details, infographics, premium payment source, denomination etc. 2. The dapp will provide a digital wallet (which is connected to the ZPB) to give easy access to DIT tokens where the owner can exchange and pay DITs to others on the blockchain network. Private Blockchain dapp Portal 10 The dapp also provides payment services to the sales portal to accept (and possibly exchange) crypto currencies as payment and facilitate pay-outs to the customer s wallet from insurance company s wallet. Inmediate Eco-system
Sales Platform Front-end Oracle configurator Front-end HTML, CSS, JQuery HTML, CSS, JQuery Insurance Back-end Node.js, Ruby-on-Rails Back-end Node.js, Ruby-on-Rails Selling a Smart BES Front-end Smart contract Solidity, oraclize, json, xml HTML, CSS, JQuery Back-end Node.js, Ruby-on-Rails Blockchain Zilliqa 11 dapp Front-end HTML, CSS, Jquery,web3.js Database MongoDB, MySQL Back-end Node.js, Ruby-on-Rails Integration REST APIs
DIT token service charge Insurers will pay in DIT for placing a Product Specific-SCP on the BES. Insurance Insurers Zilliqa Public Blockchain Selling a Smart Sales Platform Stack dapp Blockchain Oracle Stack Oracle Oracle Oracle API IoT APPS 12 Sales Portal Back-End System Private Blockchain Oracle Configurator External Oracle Sources dapp Blockchain Consumers Distributors Insurers/distibutors will pay in DIT for everry smart contract policy sold through the Inmediate network. Insurers will pay in DIT for oracle feeds/connections Consumers
Glossary of Abbreviatons Abbreviatons API Explanation Application Programming Interface Insurance BES dapp Back-End System Decentralised Application Selling a Smart DoE Details of Enforcement DIT SCP Is the token that will be used on the Inmediate Network, not an abbreviation Smart Policy 13 SCPT ToA ToC Smart Policy Template Terms of Availability Terms of ZPB Zilliqa Public Blockchain
APPENDIX Catapulting Insurance into the Digital Age
Whitepaper updates This appendix keeps track of textual changes made to the whitepaper since its conception. Insurance Selling a Smart