Blockchain in Insurance - Reading Assignment

Blockchain Business Course
#1

Welcome to the discussion about this reading assignment.

Leave your answers to the questions below in this thread. If you have any questions or you want to discuss something connected to the assignment feel free to do it in this thread as well, but please everything to the topic.

  1. What issues are they aiming to solve with this blockchain system?
  2. What type of insurance are they targeting for this solution?
  3. How do they manage to disperse payments through the blockchain?
  4. Why is the blockchains processing speed not an issue for this application?
14 Likes
#2

  1. Policy renewals, pay premiums and make and pay for claims in a better and more efficient and immutable and trusted process.

  2. Property and professional indemnity.

  3. Not sure the payment goes through the block chain. There is no crypto currency. A captive group collects fees and makes payments. The exact payment process was not described. The info about policies and claims is improved and made more secure so claims can repaid more quickly, but the payment does not go through the blockchain. No reason that Bitcoin or other cryptocurrency couldn’t be used, however.

  4. Speed of monetary transactions is not the bottleneck. The transfer of information is the bottleneck that is improved by using Hyper ledger.

10 Likes
#3

1. What issues are they aiming to solve with this blockchain system?

  • Faster and simplified transactions
  • Disperse payments
  • A more current user-friendly way for their customers to interact

2. What type of insurance are they targeting for this solution?

Professional Indemnity and Property

3. How do they manage to disperse payments through the blockchain?

The insurer’s blockchain links to Citi’s CitiConnect API which can accept instructions from the Allianz blockchain and disperse payments.

4. Why is the blockchains processing speed not an issue for this application?

The processing speed was never a pain-point. Their issue was being a global company with different languages and an excess of emails so needed to streamline communication in a simpler and faster way to process payments.

7 Likes
#4

  1. What issues are they aiming to solve with this blockchain system?
    Streamlining of their international insurance transactions.

  2. What type of insurance are they targeting for this solution?
    Professional indemnity and Property.

  3. How do they manage to disperse payments through the blockchain?
    By using the API of the Company, it links to the insurers blockchain, and therefore can authorise and disperse payments as and when necessary.

  4. Why is the blockchains processing speed not an issue for this application?
    Typically, these types of insurance contracts and claims can take weeks or months to process the administration associated with them. In this use case instant transactions are not a requirement so any acceleration of process is beneficial. In the example within the article it is mentioned that the blockchain solution could reduce the administration process from four months to four minutes.

4 Likes
#5

  1. What issues are they aiming to solve with this blockchain system?
    The Allianz Global Corporate & Speciality (AGCS) prototype showed that with blockchain, international insurance transactions can be significantly accelerated and simplified. Thru design thinking, Cabello said the insurer’s team took a very customer centric approach to international insurance.

  2. What type of insurance are they targeting for this solution?
    The prototype looks at three common process flows in the captive insurance cycle – annual policy renewals, premium payments and claims submission and settlement for professional indemnity and property. It translates these processes into the distributed ledger environment, decreasing the time from start to policy, policy to premium and claim to settlement.

  3. How do they manage to disperse payments through the blockchain?
    Captive insurance programs collect premiums from each of their operating companies and pay out claims internationally as they arise. As a fronting insurer, Allianz partners with the captive owner to administer each program.

  4. Why is the blockchains processing speed not an issue for this application?
    It is fine for the demands of a captive insurance operation where processing large amounts of complex data accurately is more important than raw speed. This is several of orders of magnitude beyond current speeds.

5 Likes
#6

1. What issues are they aiming to solve with this blockchain system?
International insurance transactions speed and its simplification.
2. What type of insurance are they targeting for this solution?
Professional indemnity and property.
3. How do they manage to disperse payments through the blockchain?
The blockchain links to Citi Bank API which can accept instructions from the Allianz blockchain and disperse payments.
4. Why is the blockchains processing speed not an issue for this application?
Because it is more important processing large amounts of complex data accurately from captive insurance operations than speed.

3 Likes
#7

1. What issues are they aiming to solve with this blockchain system? Faster and simplified transactions, disperse payments and a more current user-friendly way for their customers to interact
2. What type of insurance are they targeting for this solution?
Professional Security and Protection
3. How do they manage to disperse payments through the blockchain?
The insurer’s blockchain links to Citi’s CitiConnect API which can accept instructions from the AIA blockchain and disperse payments.
4. Why is the blockchains processing speed not an issue for this application?
Their issue was being a global company with different languages and an excess of emails needed to streamline communication in a simpler and faster way to process payments. The processing speed was never an issue

2 Likes
#8

What issues are they aiming to solve with this blockchain system?
More easy and faster transactions. Regardless of the exchange of different types of currencies between different countries and complex data.

What type of insurance are they targeting for this solution?
Two types of insurance policies – professional indemnity and property, focused to US, China and Switzerland.

How do they manage to disperse payments through the blockchain?
If there are many to chare the same data and make different types of contracts around that data. Its imprtant to zentralize where you find information and where you do the processings. That make a seamless road for everyone that must participate in different ways. Through API everyone have access in different levels.

Why is the blockchains processing speed not an issue for this application?
The processing of complex data can be handled directly without a third party. Everyone use the same source.

2 Likes
#9

  1. What issues are they aiming to solve with this blockchain system?
    Policy renewals, claims processing and premium payouts.

  2. What type of insurance are they targeting for this solution?
    Professional Indemnity and proptery.

  3. How do they manage to disperse payments through the blockchain?
    Through API’s with partner banks (CITI)

  4. Why is the blockchains processing speed not an issue for this application?
    Their use case is more about accuracy than speed. A few minutes of extra processing time is not going to change anything.

2 Likes
#10

1.They are taking the three steps or factors that take a lot of time and decreasing the time from start to policy, policy to premium and claim to settlement by incorporating into a blockchain.
2. Property and professional indemnity.
3. By the use of an API of sorts.
4. Quality vs brute speed is the most important for this use case.

2 Likes
#11

  1. What issues are they aiming to solve with this blockchain system?
    Speed of service and the removal of redundant data in the back and forth communication.

  2. What type of insurance are they targeting for this solution?
    Insurance that is out of country and requires data and money to cross boarders.

  3. How do they manage to disperse payments through the blockchain?
    They use a built in API with CITI Bank

  4. Why is the blockchains processing speed not an issue for this application?
    They run a private blockchain infrastructure this allows increase speed though is not as secure and wide spread as a public blockchain.

2 Likes
#12

1. What issues are they aiming to solve with this blockchain system?
Cut down admin time from start to policy, premium to premium, claim to settlement. Currently in their captive insurance that involves multi-nationals communication in different languages, they are spending too much time on emails and communications.

2. What type of insurance are they targeting for this solution?
Professional indemnity and property, for captive insurance programs with local subsidiaries in US, Switzerland and China.

3. How do they manage to disperse payments through the blockchain?
Customer details and policy information are stored in blockchain. The centralised captive group collects fee and makes payment through CitiConnect API which is linked to hyperledge blockchain that authorise transactions.

4. Why is the blockchains processing speed not an issue for this application?
While processing speed is important for the finance industry (e.g. high frequency trading), insurance needs blockchain for data quality and accuracy, improve communication efficiency without intermediaries, and information sharing.

3 Likes
#13
  1. What issues are they aiming to solve with this blockchain system?
    Transparency in insurance documentation and overall housing of insurance documents
  2. What type of insurance are they targeting for this solution?
    professional indemnity and property
  3. How do they manage to disperse payments through the blockchain?
    Through the distributed ledger to decrease processing time
  4. Why is the blockchains processing speed not an issue for this application?
    Because it is more important to have an accurate record than to have data processed quickly
3 Likes
#14

  1. What issues are they aiming to solve with this blockchain system?
    reducing the process complexity and the dependency of the intermediaries while providing a better communication between all the parties.

  2. What type of insurance are they targeting for this solution?
    Indemnity and property

  3. How do they manage to disperse payments through the blockchain?
    The process from start to policy, policy to premium and claim to settlement will be on Blockchain reducing the time spent on each process.

  4. Why is the blockchains processing speed not an issue for this application?
    At this application the data accuracy and communication efficiency is the key element that blockchains are strong at. The speed blockchains provide today is adaquate for this application.

2 Likes
#15

1. What issues are they aiming to solve with this blockchain system?
Acceleration and simplification of international insurance transactions.
2. What type of insurance are they targeting for this solution?
Professional indemnity and property.
3. How do they manage to disperse payments through the blockchain?
Allianz’s blockchain links to Citi’s CitiConnect API which accepts instructions from the Allianz blockchain and disperse payments, beginning with U.S. dollars and eventually extending into other markets and currencies.
4. Why is the blockchains processing speed not an issue for this application?
In this case, processing large amounts of complex data accurately is more important than raw speed.

2 Likes
#16

  1. What issues are they aiming to solve with this blockchain system?
    It aims to simplify and speed-up the transaction between different branches of the insurance and it’s clients around the world

  2. What type of insurance are they targeting for this solution?
    Professional indemnity and property

  3. How do they manage to disperse payments through the blockchain?
    They simplify and document the process on the blockchain.
    All the partners, branches and clients are engage for the successful of the digitization.
    Centralize the information using CitiConnect API

  4. Why is the blockchains processing speed not an issue for this application?
    Because processing large amounts of complex data accurately is more important for this captuve insurance than raw speed

1 Like
#17
  1. What issues are they aiming to solve with this blockchain system?
    • Streamlined transactions with less overhead, faster policy renewals, claims processing, and premium payouts
  2. What type of insurance are they targeting for this solution?
    • Professional and property indemnity
  3. How do they manage to disperse payments through the blockchain?
    • API link between bank and insurer, enabling execution of trusted payment requests
  4. Why is the blockchains processing speed not an issue for this application?
    • Contractal security, along with complexity and overhead reduction, is more important than speed. Plus it makes it faster than it already is, so still a speed improvement.
1 Like
#18

  1. What issues are they aiming to solve with this blockchain system?
    faster and much more simple transactions. Better way for users to interact

  2. What type of insurance are they targeting for this solution?
    Professional Indemnity and Property

  3. How do they manage to disperse payments through the blockchain?
    By using the API of the Company, it links to the insurers blockchain, and therefore can authorise and disperse payments as and when necessary.

  4. Why is the blockchains processing speed not an issue for this application?
    Their use case is more about accuracy than speed. A few minutes of extra processing time is not going to change anything.

1 Like
#19

To eliminate the middleman and make it so the complex insurance data from all the connected global parties can be stored and accessed by all the parties without an intermediary involved/

What type of insurance are they targeting for this solution?

Two types of insurance policies – professional indemnity and property

How do they manage to disperse payments through the blockchain?

The captive insurance blockchain model has the captive insurance programs collect premiums from each of their operating companies and pay out claims internationally as they arise

Why is the blockchains processing speed not an issue for this application?

Because they are dealing with the access and use of complex data from global sources which is already time consuming int eh current process.

1 Like
#20
  1. What issues are they aiming to solve with this blockchain system?

Accelerate and simplify the insurance business processes.

  1. What type of insurance are they targeting for this solution?

Property insurance.

  1. How do they manage to disperse payments through the blockchain?

I have not understood this from the article text (((
The comment by @Colin looks the most reasonable to me.

By using the API of the Company, it links to the insurers blockchain, and therefore can authorise and disperse payments as and when necessary.
  1. Why is the blockchains processing speed not an issue for this application?

Track record, trust and accuracy are more important.

1 Like