Insurtech Opportunities

Benefits of blockchain

    Reduce costs with automation
    Decrease risks with better data
    Improve customer service through trust and transparency
    Power up new products and channels

Use case conditions

    Involves multiple parties
    Involves new intermediaries
    No need for a central trusted authority for executing various transactions
    Accurate record of the date and time of each transaction needs to be captured
    Retroactive manipulation of data is not encouraged
    Multiple uses of the same data is possible by different stakeholders

Technology

Public Network Challenges

    Undefined legal status
    Reputation in regards to unlawful uses (e.g. ML, black market)
    Hacks and scams
    Scaling
    Volatility of rates and fees

Private / Permissioned

    Registries (real estate)
    Supply Chains
    CrossBank operations
    Distribution (energy, sharing economy)

Case Studies

Case Management

    Simplified and / or automated claim submission
    Enhanced customer experience
    Automated claim processing
    Reduction in fraudulent claims
    Integrated data resources
    Streamlined payment process

Catastrophe Swaps and Bonds

Example: Symbiont

Cross-insurance interaction

A blockchain ledger could provide insight and notification if one of those reinsurers then tried to offload some of its portion to a subsidiary of the other reinsurer. It also would help insurers gain confidence that, as they pay out claims, they are appropriately rebalancing their capital exposures against specific risks.
At minimum, global insurers can use blockchain to cut asset management costs by reducing the hedging fees they pay to protect themselves from currency fluctuations in international transactions.
B3i Services AG’s purpose is to provide insurance solutions on a blockchain platform that substantially improves efficiency across the value chain of the re/insurance industry — in some cases up to 30 percent, said B3i Services in a statement.
Examples: B3I, iXledger

Asset Registries and Data Provenance

Global, digital ledger that provides audit trail for valuable assets throughout their lifetime journey. This digital incarnation, or thumbprint, is used by various stakeholders across a supply chain pipeline to form provenance and verify authenticity.
Started with diamonds. Can be used for tokenized assets (like real estate).
Example: Everledger

Onboarding / KYC

Use blockchain for onboarding of new customers or verification of policy holders identity. Brings reduced admin cost and speed-up process for onboarding

Insurance with IOT / sensors

Smart contracts can automate certain aspects of insurance contracts, driven by cognitive services and trusted Internet of Things (IoT) data feeds. E.g. Vehicle insurance costs can differ on the performance of the driver.
Can be used for:
    Medical sensors data (ambiotex)
    Agriculture

Real-time insurance for the sharing economy

The emergence of the sharing economy, exemplified by companies such as Uber and Airbnb, has created the opportunity for new, dynamic insurance products that address the challenges inherent in leveraging personal assets for commercial purposes.
Example: SafeShare

Underwriting

Non-underwritten products—tightly integrated with the blockchain for policy administration, claim handling, and ultimately payment—reduce overheads at nearly every point in an insurance company’s operations, resulting in the potential for significant margin growth in even the most mature markets.
Last modified 1yr ago