Blockchain in Insurance:One Company’s Journey

Mike FieldsRED Labs Executive Lead

State Farm® Insurance

Agenda

1. Labs @ State Farm

2. Blockchain Journey

3. Product Overview

4. Questions

BlockchainVirtual Reality

Augmented/Mixed Reality Senior Living

AI Voice Enabled Chatbot

Aerial Data InsightsResidential

Labs @ State Farm

Blockchain Journey

Objectives

1. Investigation and evaluation of blockchain technology and its

ability to function as a viable technical solution for large enterprises.

2. Creation of a production blockchain solution capable of being

extended beyond the co-founders to other members of the industry.

3. Increased understanding of the business and legal intricacies

of establishing a blockchain network between organizations.

Initial Exploration

Identified 25+

Use Cases

Evaluated Blockchain

Platforms

Prototyped Multiple

Use Cases

7

Efficiency Automation Capital

Why Subrogation?

8

Trust Transparency Immutability

Why Blockchain?

Co-Development

Co-Built with

Another Insurance

Company

Co-Delivered a

Prototype in Q4 2018Developed on Phased

Implementation

Approach

Phased Implementation

MVP Shadow Testing

Completed System

& User TestingInitiated Code Audits Identified Impactful

Learnings

Product Overview

13

Subrogation Net Settlement

Insurer A

Blockchain

Insurer B

Ingest Subro.Data

Ingest Subro.Data

Match & Store

Demand Hashes

Create Net Settlement

Manifest

Create Net Settlement

Manifest

Match & Store Net

Settlement Hashes

Trigger Net Settlement

Payment(Payor)

Verify Net Settlement

Payment(Payee)

User Interface

ANNOUNCEMENT!

Questions?