Distributed Ledger – Example how technology can reduce supply chain risksJags Rao, May 21 2019, Director - Distributed Ledger Technology
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
DLT could expand and transform businesses - Enterprises need to be prepared and shape this change
DLT therefore offers strategic long-term benefits across the insurance value chain, beyond lower cost & complexity:• reduced duplication and
reconciliation• increased automation of business
processes• access to near real-time risk data• access to new channels and
models for top-line growth
DLT can enable cooperation platforms allowing multiple competing stakeholders to:• streamline business processes• develop data standards• share and exchange real-time data,
on a need-to-know basis
DLT can establish trust by ensuring secure, transparent and efficient transaction processes with effective governance.
The governance can be enforced either in a P2P manner by members in the DLT network or through a cooperative organization representing the members.
Increased trust Standards & Data access Lower cost & complexity+ =
2
DLT (Distributed Ledger Technology) has the potential to fundamentally change how corporations interact, transact and share data across the value chain
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks 3
Combined innovation of DLT, IoT and AI is accelerating commercial supply chain digitization (e.g. Marine Trade, Trade Finance, Automotive, Food) and generating structured and formatted data at scale
Four quadrants depict differences in nature of data subjects, risk patterns and regulatory aspects
Commercial Property
Personal Property
Casualty
Life and Health
Commercial Lines
Property People Liability Asset-centric Lower data regulation End-insured specific risk
events shared through DLT
People-centric High data regulation End-insured specific risk
events hard to access
High-volume New risk patterns discovered
through research High data sensitivity
Low-volume New risk patterns discovered
thru specialty Low data sensitivity
Personal Lines
Urban Air MobilityUrban Air Mobility
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
Example Marine Trade Supply Chain-TradeLens
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Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
TradeLens – Blockchain based platform that is digitizing the global marine trade
• The platform empowers faster and more efficient, transparent and secure global trade
• TradeLens is built for the industry and offers benefits to trade participants from across the supply chain ecosystem
• IBM and Maersk are developing the platform under a joint collaboration, with significant input from and participation by the industry
• An Advisory Board is being formed to help shape the platform and drive standards
• TradeLens is live in production today, processing millions of transactions per day
JOURNEY
September 2018
TradeLens Limited Availability Release
December 2018
TradeLens Commercial Release 1.5 million
events per day published to the platform
January 2019
Latest production release includes new document
sharing, permissioning and notification features.
Working with more than 100 ecosystem
participants
August 2018
Formal launch of the TradeLens platform
92 participants signed on
January 2018
Beta release of the platform and launch of Early
Adopter program; trials underway
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Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks 6
TradeLens SOLUTIONS LANDSCAPE
NETWORK
Comprised of the TradeLens
network members, such as
carriers, ports, and customs
authorities, that connect to and
provide data to the platform
PLATFORM
Accessible via an open API, the
TradeLens Platform brings
together the supply chain
ecosystem and enables the
industry to share information
and collaborate; Blockchain and
cloud technologies power the
platform
APPLICATIONS AND SERVICES
An open marketplace that
allows both TradeLens and
third-parties to publish fit-for-
purpose services atop the
TradeLens platform
TRADELENS
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks 7
BCO / NVO FFW / CHB / 3PLInland Transportation
Customs / Government Authorities
Ports / TerminalsOcean Carriers
FFW / CHB / 3PL
Inland Transportation
BCO / NVOPorts / TerminalsCustoms / Government Authorities
TRADELENS BLOCKCHAIN BUSINESS NETWORK
TRADELENS PLATFORM
Packing List
Bill of Lading
Export Documentation
Advance Declaration
Pre-Paid Invoice
Certificate of Origin
Shipping Instructions
ISF
Geography Specific Certificate Dangerous Goods
Declaration
Cargo Specific Certificate
Commercial InvoiceCustoms
ClearanceImport Documentation
Not exhaustive list of documents managed by platform
SHIPPING MILESTONES AND SHIPMENT DATA
STRUCTURED AND UNSTRUCTURED DOCUMENTS
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rt t
ran
spo
rt e
qu
ipm
en
t tr
ackin
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Not exhaustive list of milestones managed by platform
TradeLens Platform generating data at scale
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
Example Food Supply Chain – IBM Food Trust
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Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
Built on a blockchain platform, IBM Food Trust offers industry-specific functionality targeted at key pain points
• Fresh Insights*
Access real-time and aggregate supply chain data to extend product freshness and shelf life
• Trace
Trace the location and status of food products upstream and downstream across the supply chain
• Certifications
Enable reliability and accountability with instant access to digitized records and documents
• Third-party
Partner to expand functionalities and deliver new value across the food system through our APIs (see next page)
Food Supply
Ecosystem
Blockchain
Technology
IBM Blockchain Platform
Hyperledger Fabric
*Will be made available in 2019
Capabilities
Information-
sharing Platform
APIs can be used to retrieve platform data to create new applications for internal and consumer facing applications
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Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
IBM Food Trust promising to cater value for all ecosystem actors Speeds time-to-value by* :
• Adding new modules that address various food supply chain pain points
• Designing a business model where all clients, from small farm to large retailers, generate a positive ROI from the first few products and partners onboarded
• Growing the ecosystem with supply chain partners, competitors, third parties, and standard-setting bodies
Growers
Food Manufacturers Food Logistics
• Provenance
• Prove sustainable
growth practices
• Real-time inventory
management
• Automatic certificate
management
• Real-time inventory
management
• Compliance
efficiencies
Wholesalers /
Distributors
• Real-time inventory
management
• Targeted recalls
Food Retailers
• Brand trust
• Customer loyalty
• Targeted recalls
• Extended shelf-life
Ensuring value
for all supply chain actors * Based on internal value analysis of IBM Food Trust
10Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
Risk Intelligence Cockpit
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Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
Swiss Re Risk Intelligence Cockpit at the heart of delivering supply chain resiliencePlatform for collecting supply-chain data, delivering data-driven intelligence and global scaling of superior solutions
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Platform Data Lakes Resilience
Digital Distribution
Event-driven Risk Servicing
Risk-as-a-Service
Decentralised sources
Data harvesting engine with a repeatable framework that
aggregates diverse external data lakes and enriches with SR historic risk data
to deliver resilient applications
Risk Intelligence Cockpit
Urban Air Mobility
Centralised sources
Zhuhai /
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
Resilient Trade: Proof-of-Value for Accumulation and Composition RisksRisk specific inferences are derived for the marine cargo movement in the prototype version by connecting to time-series data from TradeLens, a digital marine trade supply chain platform
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Cargo shipping data Resilient TradeRisk Intelligence Cockpit
Prototype focused on use cases involving two kinds of risks modelled from the transport
events:1) Accumulation risk: Patterns in transport
events leading to high variance in accumulation of consignments at a given port
2) Composition risk: Combinations of contents of consignments at a vessel/port leading to
degradation/loss of cargo
Link to Prototype: Resilient Trade (Marine) proof-of-value
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks 14
Jags Rao | May 2019 | Distributed Ledgers – Supply Chain Risks
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The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.
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