Note: Letter or email would be formatted in appropriate medium as applicable to the
situation/company. I will only include basic formatting of the body of the message for this
assignment purpose. Also, I get it…it’s lengthy - with more time and finesse I will decrease length.
Body of Letter to CEO
Blockchain technology paves the way for reduced operating costs, positively impacting our bottom
line for all stakeholders while adding tremendous value for customers from the brokerage to the
individual policy holder.
Business transactions take place every second of every day - orders, payments, account tracking,
contracts and much more. Often, each participant has his or her own ledger or tracking system -
which could ultimately be a version of the truth that differs from other participants. These multiple
ledgers can be a recipe for error, fraud and inefficiency. Because members on a blockchain share a
common view of the truth, it’s now possible to see all details of a transaction end-to-end, reducing
those vulnerabilities.
Ordinary transactions are complex. Participants with separate ledgers increase possibility of human
error or fraud, reliance on intermediaries for validation creates inefficiencies and processes can
become paper-laden, resulting in frequent delays and potential losses for all stakeholders.
Blockchain reduces complexity:
There is a single, shared, tamper-evident ledger - once recorded, transactions cannot be
altered. All parties must give consensus before a new transaction is added to the network.
Paper processes are reduced or eliminated, speeding up transaction times and increasing
efficiencies.
Building a blockchain:
As each transaction occurs, it’s put into a block. Each block is connected to the one before
and after it. Transactions are linked together, creating an irreversible chain: a blockchain.
Blockchain benefits are critical to enterprises:
• It’s distributed. Blockchain works as a shared system of record among participants on a
business network, eliminating the need to reconcile disparate ledgers.
• It’s permissioned. Each member of the network has access rights so that confidential
information is shared on a need-to-know basis.
• It’s secure. Consensus is required from all network members, and all validated transactions
are permanently recorded. No one, not even a system administrator, can delete a
transaction.
Blockchain is creating extraordinary opportunities for businesses to come together in new ways:
• Creating new value - exploit new business models and eliminate inefficiencies.
• Optimize ecosystems - streamline business processes and the exchange of value along your
ecosystem.
• Reduce risk - replace uncertainty with transparency through a trusted decentralized ledger.
Summary:
Blockchain can help enterprises across many industries free up capital, lower transaction
cost, speed processes and provide security and trust – all true and applicable to the insurance
industry.
Additional Information:
Transforming insurance management with blockchain addresses many of the challenges we
currently face with measurable results including significantly decreased operating costs.
Particular challenges our industry faces include:
Complex risk coverage - Employees, policy holders, adjusters or agents who can’t view
policy information usually need human help. This elevates the chance of errors, delays
claims resolution and increases costs. The challenge escalates with complex insurance
programs or managing policies in multiple countries, involving strict legal and regulatory
adherence.
A potential solution includes converting policies into “smart contracts” giving a
single, consolidated view of policy data and documentation in real time. The solution
allows visibility into coverage and premium payments, delivering automated
notifications to network participants following payment events.
Subrogation - Claims subrogation requires significant involvement from insurers and thirdparty companies. Manual multi-step, multi-company reviews can be costly and timeconsuming, typically resulting in an incomplete view of untrusted data.
A transparent blockchain solution allowing multiple companies to collaboratively
assemble relevant records can streamline claims recovery. Its shared ledger
capabilities can help insurers agree on claims, build trust that evidence is being
shared and improve the overall customer experience.
Group Benefits - Organizations offering group benefits often rely on a complex network of
administrators, providers, employees and others. Different versions of the same data require
consolidation to ensure eligibility and access to benefits.
Blockchain can be the vital link across a vast ecosystem of third-party administrators
and service provider networks. Its shared ledger transparency can help employers
reduce errors resulting in improved claims processing, better provider management
and lower operational expense.
Reinsurance - Major claim events like hurricanes or other natural disasters require multiple
insurers to share risk for effective operations and business viability. For reinsurers working
together, shared visibility into operational data is crucial.
Blockchain helps ensure contract certainty and improve risk-handling capabilities —
from managing contracts among reinsurers to maintaining shared accounts and
managing claims payments. With transparency across the reinsurance value chain,
blockchain can eliminate the need for participating companies to regularly reconcile
their reinsurance accounts.
Incorporating blockchain into our business model establishes our company as an elite front-runner
in the industry. Digital Insurance Agenda has highlighted several businesses offering innovative
insurance products thanks to blockchain technology. Among these are:
Bdeo - transforming the claim customer journey through remote assessment
Offering a safe and simple experience to the insured who needs not physically be
involved in any claim expert visits.
wakam - creator of insurance solutions for B2B partners
On track for their platform to onboard partners and create their products in less than a
day - allowing brokers, insurance distributors and start-ups to easily and quickly
produce their own bespoke insurance product in the form of an API (Application
Programming Interface), in complete autonomy in just a few hours.
WESMARTi - B2B2C many-to-many model
Offers an open, flexible, blockchain-based cloud platform, using smart contracts to
ensure efficiency, transparency and reduction of operational losses.
Their insurance ecosystem involves the interaction of various stakeholders
such as Insurance Companies, Reinsurers, Distributors and Brokers in a
virtuous many-to-many model. The players interact within the insurance
landscape using new distribution channels, such as instant insurance and
parametric policies. The process is digital, fast, reliable, with clear pricing
and totally transparent.
Sources/Additional Reading:
https://academy.ivanontech.com/blog/what-is-the-blockchain
Please try to be forgiving with grammatical or context challenges – English is often a second
language (at best) for the some of the team at Ivan on Tech.
https://www.blockchain-council.org/blockchain/how-blockchain-smart-contracts-save-time-andmoney/
https://b3i.tech/news-reader/eurapco-and-b3i-launch-unity-the-first-global-risk-transfer-operationalsolution-developed-on-blockchain-infrastructure.html
https://b3i.tech/files/B3i_Content/PDF/Brochure/B3i-Reinsurance-Solution-v2-0.pdf
https://next.digitalinsuranceagenda.com/wp-content/uploads/2021/03/The-DIA-Top-100-
TheInsurtechs-to-Watch-in-2021.pdf
35 Blockchain Companies Paving the Way for the Future
https://builtin.com/blockchain/blockchain-companies-roundup
30 Blockchain Application and Real-World Use Cases Disrupting the Status Quo
https://builtin.com/blockchain/blockchain-applications
https://www.ibm.com/downloads/cas/K54GJQJY
https://www.ibm.com/downloads/cas/OMJRXZAL
Bitcoin White Paper https://bitcoin.org/bitcoin.pdf