blockchain in commercial insurance

CodeNode

ChainConf Bytes – Thursday 4th May 2017

1 © Distlytics Ltd 2017

Can Blockchain bring a 17th Century Industry

into the 21st Century?

Gary Nuttall

Managing Director

Agenda

1. Introductions

2. General vs Specialist Insurance

3. Potential Use Cases

4. Proof of Concept Targets

5. Learning Outcomes

6. Q & A

Agenda

1. Introductions

2. General vs Specialist Insurance

3. Potential Use Cases

4. Proof of Concept Targets

5. Learning Outcomes

6. Q & A

1 - Introduction: Me

1 - Introduction: YOU!

Developers ?

Designers ?

Testers ?

Analysts ?

Learners?

Blockchain Experts ?

This presentation reflects my personal views and is not intended to reflect the views of past, current and

prospective employers, clients or other agents.

"Prediction is very difficult, especially if it's

about the future."

Nils Bohr, Nobel laureate in Physics

Caveat: Please read the small print…

Agenda

1. Introductions

2. General vs Commercial Insurance

3. Potential Use Cases

4. Proof of Concept Targets

5. Learning Outcomes

6. Q & A

2.1 General Insurance

Consumer/Small Business

Home – Buildings & Contents

Property – Motor, high value items, mobiles, electronics

Life, Travel

Accident/Health/Medical

Distribution:

Direct

Aggregator

2.1 General Insurance

2.1 General Insurance

2.2 Specialist Insurance

2.2 Specialist Insurance

2.2 Specialist Insurance

(LMG/BCG London Matters Report, Nov 2014)

2.2 Specialist Insurance

Key features:

• Large capital reserves to cater for major claims & catastrophe

events

• Exposure/liability often “long-tail”

• Complexity reduces ability to commoditise

• Emerging risks – uncertain/unknown problems

• Requires risk pooling/sharing (Syndication)

• Reinsurance allows better risk management

• RoE critical

2.2 Specialist Insurance

(LMG/BCG London Matters Report, Nov 2014)

2.2 Specialist Insurance

Agenda

1. Introductions

2. General vs Specialist Insurance

3. Potential Use Cases

4. Proof of Concept Targets

5. Learning Outcomes

6. Q & A

3. Potential Use Cases

3. Potential Use Cases

3. Potential Use Cases

How does it work ? Lloyd’s

Underwriter

Broker

Underwriter

Claims Mgt

Broker

Underwriter

Underwriter

Underwriter

Broker

How does it work ? Lloyd’s

Underwriter

Broker

Underwriter

Claims Mgt

Broker

Underwriter

Underwriter

Underwriter

Broker

(from LM TOM consultation)

3. Potential Use Cases

3. Potential Use Cases

(from LM TOM consultation)

The Market is already aligned with P2P ☺

There are many opportunities across the value chain

3. Potential Use Cases

Agenda

1. Introductions

2. General vs Specialist Insurance

3. Potential Use Cases

4. Proof of Concept Targets

5. Learning Outcomes

6. Q & A

4. Proof of Concept Targets

Criteria:

• Require multi-party participation

• Have different access requirements for participants

• Benefit from improved transparency

• Require minimal (if any) integration with existing systems

• Be sufficiently small to fit with a short PoC whilst providing

sufficient opportunity to conduct a representative

simulation

• Benefit from an improvement to the existing

process/method

• Not directly conflict with any in-flight workstream

• Have an appetite expressed by the market to be worthy of

consideration From Blockchain Interim Report

(http://isupporttom.london/media/8976/blockchain-interim-report.pdf )

4. Proof of Concept Targets

PoC 1 - Claims Bordereau – As-Is

From Blockchain – So What? Discussion paper

(http://isupporttom.london/media/8978/blockchain-so-what-discussion-paper.pdf )

4. Proof of Concept Targets

PoC 1 - Claims Bordereau – To-Be

From Blockchain – So What? Discussion paper

(http://isupporttom.london/media/8978/blockchain-so-what-discussion-paper.pdf )

4. Proof of Concept Targets

PoC 2 – Delegated Authority KYC – As-Is

From Blockchain – So What? Discussion paper

(http://isupporttom.london/media/8978/blockchain-so-what-discussion-paper.pdf )

4. Proof of Concept Targets

PoC 2 – Delegated Authority KYC – To-Be

From Blockchain – So What? Discussion paper

(http://isupporttom.london/media/8978/blockchain-so-what-discussion-paper.pdf )

Agenda

1. Introductions

2. General vs Specialist Insurance

3. Potential Use Cases

4. Proof of Concept Targets

5. Learning Outcomes

6. Q & A

5. Learning Outcomes

From Blockchain Interim Report

(http://isupporttom.london/media/8976/blockchain-interim-report.pdf )

5. Learning Outcomes – Learn more!

From Blockchain Interim Report

(http://isupporttom.london/media/8976/blockchain-interim-report.pdf )

5. Learning Outcomes – Learn more!

From Blockchain Interim Report

(http://isupporttom.london/media/8976/blockchain-interim-report.pdf )

5. Learning Outcomes – Surprises!

80% of business is renewal based ….. Which means it’s not digital

5. Learning Outcomes – Surprises!

Yes please! – How can we help ?

High level of participation

Eager to investigate & explore

Vendor support

Executive support

5. Learning Outcomes – Surprises!

Doesn’t look any different!

From Blockchain – So What? Discussion paper

(http://isupporttom.london/media/8978/blockchain-so-what-discussion-paper.pdf )

6. Q & A

THANK YOU!

USEFUL RESOURCES

www.distlytics.com

www.blocksure.com

www.teamblockchain.net

www.isupportTOM.London

Gary Nuttall

EMAIL: GNUTTALL@DISTLYTICS.COM

TWITTER: @GPN01

LINKEDIN: https://uk.linkedin.com/in/garynuttall