Blockchain in Insurance - Reading Assignment

1. What issues are they aiming to solve with this blockchain system?
Annual policy renewals, premium payments and claims submission and settlement. It translates these processes into the distributed ledger environment, decreasing the time from start to policy, policy to premium and claim to settlement.

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 is design it with the capability to communicate with Citi’s API, enabling a link through the new prototype for bank insurance system and a payment system, the blockchain does not deal with payments, it just order and pass the payment instructions to Citi’s API and then they deal with payments.

4. Why is the blockchains processing speed not an issue for this application?
While blockchain processing is not the fastest in finance — it dawdles compared to high frequency trading, for example — 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.

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  1. What issues are they aiming to solve with this blockchain system?
    Insurance payments and renewals relating primarily to indemnity and property insurance

  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?
    They are using Hyperledger Fabric with Citi API and Allianz to issue the payouts

  4. Why is the blockchains processing speed not an issue for this application?
    Their captive prototype is simplified to allow transactions and cash transfers to be accelerated. Their other systems also speed up other parts of the process such as email and file interactions

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  1. What issues are they aiming to solve with this blockchain system? The implementation of automated processing, replaces the exchange of thousands of emails and data files in order to verify and disperse payments.
  2. What type of insurance are they targeting for this solution? The Allianz blockchain prototype built on Hyperledger 1.0 focuses on professional indemnity and property policies.
  3. How do they manage to disperse payments through the blockchain? Three common process flows in the captive insurance cycle: annual policy renewals, premium payments, and claims submission and setllement are translated to the distributed ledger environment decreasing time from start to policy, policy to premium, and claim to settlement, thereby significantly accelerating and simplifying the process.
  4. Why is the blockchains processing speed not an issue for this application? Because communicating and exchanging information across geogrphies is still a slow and complex procedure in our modern world. What might have taken weeks and months can now be accomplished in minutes. Blockchain processing works well for processing large amounts of complex data and unlike speedier times required in finance, minutes works well and is far superior to traditional processing times.
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  1. Complex and slow international insurance transactions.
  2. Professional indemnity- and property insurance policies. For a captive insurance program with local subsidiaries in the US, China and Switzerland.
  3. In most financial services flows there is a party in the middle orchestrating traffic between business participants, but blockchain allows everyone to communicate through the same source so there is no need for any intermediary.
  4. Accuracy in these complex processes is more important than speed. Microsecond trading speed is not needed, but improving from 4 months to minutes is a huge speed improvement.
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  1. Retrieving the latest information from all parties at one go and reduce intermediaries communication.

  2. Professional indemnity and property insurance policies.

  3. By using the company’s API to link to the insurer’s blockchain. The required information can be verified instantly and payment disbursements can be authorized almost immediately.

  4. The priority is streamlining communication (reducing intermediaries communication) and information accuracy. The faster processing time by using blockchain is an added advantage.

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  1. What issues are they aiming to solve with this blockchain system?
    Our captive insurance blockchain prototype demonstrates that regular transactions and cash transfer between fronting insurers and clients can be significantly accelerated and simplified

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

  3. How do they manage to disperse payments through the blockchain?
    The blockchain is design it with the capability to communicate with Citi’s API, enabling a link through the new prototype for bank insurance system and a payment system, the blockchain does not deal with payments, it just order and pass the payment instructions to Citi’s API and then they deal with payments.

  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

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  1. What issues are they aiming to solve with this blockchain system?
  • The speed and complexity of international insurance transaction.
  1. What type of insurance are they targeting for this solution?
  • professional indemnity and property
  1. How do they manage to disperse payments through the blockchain?
  • By using API to reduce intermediates.
  1. 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.
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  • What issues are they aiming to solve with this block-chain system?
    Policy renewals, claims processing and premium payouts.
  • What type of insurance are they targeting for this solution?
    Professional Indemnity and property.
  • How do they manage to disperse payments through the block-chain?
    Through API’s with partner banks (CITI)
  • Why is the block-chains 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.
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  1. The issues being solved were the overly complex email & communications previously needed to renew annual insurance in a captive market.

  2. A captive market in this instance is a highly specific insurance market, where only one entity is able to insure, hence the customer of the insurance is referred to as ‘captive’. The customer is not shopping around for a new deal as there is only one insurer in the market, and he also has no choice but to be insured, therefore he only has one option, to renew. The policy can be renewed every year once certain particulars have been met.

  3. A number of factors need to be checked and cross referenced before a renewed insurance is issued to the captive customer, and only once these have been established as being in good order can the insurance proceed. Using the blockchain, these ‘transactions’ have been automated. Once conditions are met [update details, checklist of whatever], then the insurance is triggered and generated in a smart contract type setup, which can then can then be invoiced to the customer, who can then pay the insurer, and the customer can receive his/her certificate and cover for the year. This process is now without need for an intermediary, with no need for emails and checking communications and credentials and so on.

  4. Because these accounts are known entities to each other, and they are annual renewals of a pre-existing relationship, the data must be 100% correct, but it does not need to be particularly fast, like a real-time transaction in a shop does, for example. They can be lined up and executed in good time for the annual renewal timeframe, and they can be relied upon to be rock solid in terms of reliability.

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Faster and simpler transactions even internationally, user friendly.

professional indemnity and property

They use CitiConnect API to centralize the information, and get with it instructions from the blockchain and disperse payments

It is more important to precess large amount of complex data rather than focusing on raw speed but bad performance/transpariency

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  1. What issues are they aiming to solve with this blockchain system?
  • Policy Renewals, paying premiums, and making payment for claims for a better more efficient, immutable, and trusted process
  1. What type of insurance are they targeting for this solution?
  • Property and Professional Indemnity (Security)
  1. How do they manage to disperse payments through the blockchain?
  • The insures blockchain links to Citi API, which will then accept instructions from the AIA blockchain and disperse payments appropriately
  1. Why is the blockchains processing speed not an issue for this application?
  • Because instant transactions are not a requirement for insurance. For example, using the blockchain this process can be reduced from 4 months to 4 minutes according to the example in the article
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  • What issues are they aiming to solve with this blockchain system?
    With blockchain, international insurance transactions can be significantly accelerated and simplified.

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

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

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  1. the user experience will increase a lot: transapency, reduction of complexityand and velocity.

  2. indemnity and property ensurance.

  3. the ledger are linked with API to City payment system.

  4. the tradition manual process ad widely slow compare to blockchain technology.

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  1. Simplification and speed are the main issue they are looking to solve with this implementation.
  2. Professional indemnity and property are the insurance products targeted with this project.
  3. It appers they are dispersing payments through an API.
  4. Because processing large data sets accurately from multiple parties is far more important.
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  1. To significantly accelerate and simplify international insurance transactions.
  2. Professional indemnity and property insurances.
  3. The insurer’s blockchain links to Citi’s CitiConnect API which can accept instructions from the Allianz blockchain and disperse payments.
  4. Because in this kind of business quality of data is more important than speed as usually the processing times are of months.
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  1. Annual policy renewals, premium payments and claims submission and settlement.

  2. Professional indemnity and property.

  3. By using an API it interfaces with Citi for payments.

  4. Automated processing replaces the exchange of thousands of emails and massive data files and you can almost go from 4 months of administration work to 4 minutes using the blockchain.

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Faster and simplified transactions.

Professional security and protection.

Through API’s with banks to the blockchain.

Their use case is more about accuracy and trust than speed.

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  1. To speed up transactions with the clients.
  2. Professional indemnity and property.
  3. Using API.
  4. Priority towards accuracy over speed.
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  1. What issues are they aiming to solve with this blockchain system? Primarily the speed of international transactions. Payments and claims that usually take months to resolve due to the human aspect.

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

  3. How do they manage to disperse payments through the blockchain? There appears to be a smart contract in place between CitiConnect and Allianz. CitiConnect’s API accepts instructions given by Allianz in relation to the payments.

  4. Why is the blockchains processing speed not an issue for this application? It is moreso about the man hours and workload that is saved from emails going back and forth that is of value to the company.

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  1. Accurately processing large amounts of complex data, then communicating the information internationally in a timely manner.
  2. Captive Insurance Programs
  3. AGCS links to CitiConnect API, from there Citi may disperse payments.
  4. The industry standard involves many steps- usually involving multiple emails. Blockchain is much faster than the archaic standard.
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