The previous post discusses the possible relationship between blockchain and insurance industry transformation. The second session focuses on B3i as an example of insurance agency that tries to transform the industry by using technology. Of course, many other companies are doing the same. However, the strategies may vary widely, depending upon the business characteristics.
As discussed before, companies are more confident in doing businesses when they are insured against possible loss. B3i shows that blockchain technology benefits the insurance industry in many ways. The following sessions discuss other examples of companies and the efforts they make to transform the insurance industry.
Blockchain and Insurance Industry Transformation: RiskBlock Alliance
This industry consists of 34 insurance companies and property brokers. The group seeks to build blockchain-enabled solutions to their problems, called Canopy. Christopher McDaniels, RiskBlock Alliance’s President, said that Canopy comprises of interconnected blockchains. Each block refers to different category of insurance businesses in different areas. Canopy consists of the following blocks:
- Auto insurance block: This application allows the drivers and law enforcement authority to confirm insurance coverage of someone in a real time way. The insurers in the first group include Property and Casualty Canada and US Life and Annuity. Canopy technology is under testing step. It is expected to launch in spring this year. Christopher is optimistic that the new technology will allow the insurance companies to save hundreds of millions.
- Notice of Loss: The second block aims at streamlining the process of insurance claim. It focuses on making the current process more efficient. This will benefit the customers as well as the insurers.
Blockchain and Insurance Industry Transformation: Etherisc
The Etherisc platform uses smart contract tools to create insurance policies based upon Ethereum blockchain. Yes, Ethereum excels when it comes to smart contract development. Etherisc develops a number of applications, including:
- FlightDelay; this product enables the customers to obtain insurance due to the flight delay or cancellation. The customers can buy the insurance policies using a credit card. In case that their flight is delayed by 45 minutes or longer, they are automatically paid. No paperwork is necessary to make the claim.
- Hurricane policy; this product is available for Puerto Ricans. They can insure homes against the risk of hurricane for loss of up to $5.000. The customers are paid when their homes are damaged by the hurricane after the insurer confirms the weather to local authority. The insurance developers are now seeking for investors to fund the project.
Blockchain and Insurance Industry Transformation: Black Insurance
This company focuses on empowering brokers that want to develop new insurance products. The platforms connects the brokers with potential investors to fund the projects. According to the CEO Risto Rossar, foundation of the projects resembles that of Lloyds of London. The building blocks are similar, namely brokers, investors, and syndicates.
Unlike the other agencies, Black Insurance does not offer insurance product. Instead, it provides a platform that tracks the deals between the investors and the syndicates. The smart contracts species tasks, responsibilities, and important things like insurance premiums, interest payments, and many more.
Based on the four examples of companies that try to related blockchain and insurance industry transformation above, the online insurance seems promising. What do you think?