Blockchain for Insurance –
Opportunities and Approach
O c tober 2019
R3 - Background 1
Industry challenge: “what I see is not what you see”
Apply Credit
Post Invoice
Generate invoice
Do work
Record Work
Confirm credit
Receive Invoice
Key in accounts payable
Pay Bill
Acknowledge work
NOW
?
This is what I think I
am owed This is what I think
I owe
SUPPLIER CUSTOMER
Apply Credit
Post Invoice
Generate invoice
Do work
Record Work
Confirm credit
Receive Invoice
Key in accounts payable
Pay Bill
Acknowledge work
AFTER
BLOCKCHAIN
Shared Truth
Shared business logic
Shared data
Shared network
We both see the
same thing
SUPPLIER CUSTOMER
R3 Timeline
Sep 2014 | First R3 roundtable
held in NY; attended by eight
banks to understand blockchain
Dec 2015 | R3
consortium grows to 42
bank members
Nov 2016 | Corda
Open Sourced
Jul 2018 | Corda
Enterprise 3.0 launches
Aug 2018 | Ecosystem grows to 200+
financial institutions, regulators, trade
associations, professional services
firms and tech companies.
Sep 2015 | Nine banks form a
partnership with R3 to design and
deliver advanced DLTs to global
financial markets
Sep 2017 | Corda v1.0 GA
May 2019 | Corda Enterprise
v4.0 Release, adding
significant functionality
required by leading clients,
such as B3i
Jan 2019 | Corda Network
goes into Production
Dec 2018 | Corda
Foundation Launched,
Sep 2019 | Corda Enterprise
v4.2 Release, adding
significant HSM functionality
needed for security in
enterprises
R3 Insurance Timeline
July 2018 | RiskBlock migrates to
Corda Enterprise from Ethereum
Jan 2018 | B3i
Migrates to
Corda from
Hyperledger
Jan 2017 | R3
(Re)insurance
CoE is launched
in partnership
with ACORD
Oct 2018 | Insurance
Cordapp Trial for ILW
successful
Jan 2019 | Insurtech
Challenge Launched
March 2019 |
Insurwave LIVE
and on the
Corda Network
(tCN)
July 2019 | B3i
onboards on to
tCN
Aug 2019 |
Round 2 of
insurtech
challenge
successful; 4
CordaCon
finalists
Sep 2019 |
RiskStream goes
LIVE *
Corda for Insurance
Insurance Platform Requirements Corda Features
Privacy and security Emphasis upon privacy by sharing transactions on a need-to-know basis plus
enterprise security features (Firewall, HSMs)
Reduce duplication and ensure finality of transactions Solves issue of duplicate insurance for same asset and profiting from claims.
Notary delivers transaction finality.
Network interoperability Corda is designed to allow interoperability between all CorDapps and nodes. Well
suited to ACORD message types.
IT system interoperability Java based, connects to existing core insurance platforms (ex. DuckCreek,
Guidewire) through APIs, RPCs, and oracles
Scalability Corda is designed to meet high performance requirements at scale
Legal prose in smart contracts Insurance policy is essentially the legal document transactions and events are
triggered from.
Support 24/7 production support on non-community version
Corda adoption is being driven through the R3 ecosystem of 350+
members
• Recreate existing
business networks with
banks, wealth, SMEs
and corporates
• Grow your existing
network through R3’s member base
• Collaborate with
Regulators, Central
Banks, and Legal
Institutions
Ecosystem Part icipants
Delivery Partners
Infrastructure/Tech Providers CorDapps
• Deploy on your technology of choice
• Integrate with legacy systems
• Increase efficiencies across
your business by utilizing
ready-built CorDapps
• Collaborate with system
integrators to move your
CorDapps to production
• Accelerate your go-to-market
strategy
R3 Ecosystem
2 Why Blockchain?
Blockchain is NOT a piecemeal approach
Combined Ratio
Losses
Expenses
Earned Premiums
RPA, ML, core system
modernization
AI, advanced analytics
New products and pricing
models , alternate
distribution channels
When leveraged correctly…
3 What’s the industry doing?
Corda is being leveraged across the (re)insurance value chain…. Product
Development &
Marketing
Sales &
Distribution Underwriting
Policy Admin
and Servicing
Claims
Management
Treasury Mgmt,
Billing &
Payments
Value Chain Risk Mgmt
Re
du
ce
ex
pe
nse
s
Efficiency gains
Reducing claim
costs
Automation Blocksure
Re
du
ce l
oss
es Real-time data
POI verification
Fraud detection
Incr
ea
se
Pre
miu
m
Premium
financing
Alt distribution
channel
New product
development
MIDAS
B3i
Insurwave Insurwave
Insurwave
ChainThat ChainThat
RiskStream
RiskStream
Infosys
Infosys
Blocksure
Insure Small
Insure Small
TrustLayer
Ledgertech
LIVE
PILOT
In-flight POC
(Re)insurance
Platform
Technical
Accounting &
Settlement
Proportional reinsurance
premium and claims
settlement on ledger
Near Term (1-3 years)
Moving from discovery to production for early use cases focusing on
efficiencies in the value chain
Claims settlement for
complex reinsurance
policies ex. Risk-
attaching / loss-
occurring
Trigger based invoicing
Contract Placement Smart-contract
based elementary
claims triage for
XOL Reinsurance,
parametric
insurance etc
Fact verification via
Oracles and data
providers for CAT
Loss settlement
Medium Term (3-5 years)
Blockchain benefits proven and use cases expanding into
enabling new insurance products. End-to-end eco-system
participants growing enabling new opportunities.
Long Term (>5 years)
Blockchain established with an abundant eco-
system. Blockchain under-pins and enables other
technologies to be fully realised.
Smart-contract based
auto-underwriting for
simple reinsurance
policies ex. Reinsurance
treaty
IoT based loss control
There’s much much more that can be done with Corda…
Cash on ledger for
instantaneous
settlement
Cross-asset contract
placement and claims
triage ex. Combining
marine cargo and hull
risks
Regulator integration for
Multinational Programs
for tax calculations
IoT based dynamic risk
pricing
For your Corda journey…
Familiarize Identify a use case Sanity test Build it right Production
1. Understand key differences
2. Identify relevant business processes / areas
1. Identify key business drivers
2. High-level business case and ROI formulation
1. Don’t reinvent the wheel 2. Work with committed
n/w participants
1. Work with an experienced,
certified team
2. Build for the future – on Enterprise from Day 1
1. Plug into a mature n/w ex
B3i
2. Work with established BNG’s and BNO’s ex B3i
Contact us at [email protected]
r3.com
New York 11 West 42nd Street, 8th Floor New York, NY 10036
London 2 London Wall Place, London, EC2Y 5AU
Singapore 80 Robinson Road, #09-04 Singapore, 068898
Thank you
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Appendix
4.1
Corda Enterprise
Corda Enterprise – Ready for Business
Proven performance
Handle 600> transactions per
second (TPS) and validate and
enhance setup with performance
test suite
Secure + private
Transaction history is shared on
a unique ‘need to know’ basis. HSM integration ensures
protection for signing keys.
Cloud Deployment / Management
Deploy Corda Enterprise easily with
templates on cloud platforms,
quickly standup nodes e.g. with
Docker distribution
Interoperability
Corda Enterprise is 100% interoperable
with Corda open source. Corda Network
enables blockchain networks to transact
with one another.
Enterprise integration
Packaged integration with mission
critical systems and the most
widely used database technologies
Corda Firewall
Ability to operate a Corda node
securely inside an enterprise
datacentre
Production Readiness
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We are in the production era of blockchain applications. Many platforms will fail to make the transition
from POC to production
Key concerns:
• Security – How will I deploy my node in an enterprise environment?
• Resilience – How will I meet the runtime objectives of my users and stakeholders?
• Scalability – How will my applications scale to production volumes?
• Integration – How will I integrate with my existing systems?
Proven Performance
• Node throughput scales with the number of available cores
• Network throughput scales with the number of available notaries
• On Corda 3.0 Accenture and DTCC demonstrated network throughput in excess of 20k tx/sec
• Benchmark study showed 115 million transactions in 5 hours
across 170 nodes, handling 6,300 requests per second
• Corda Enterprise 4.0 can handle
twice as much workload Jennifer Peve,
Managing Director, co-head of fintech office, DTCC
In the study, conducted by Accenture….R3 proved that DLT can support average daily trading volumes in the US equity market of
more than 100 million trades per day.
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Production Environment Flexibility We can support a myriad of infrastructure models for clients while providing enhanced security, performance and privacy
features
• Microsoft and R3 have partnered to not only provide Corda on Azure, but Corda is adding capabilities to take advantage of rich features Azure is developing to support blockchain platforms
• Intel has partnered with R3 to make Corda capabilities availability within Intel’s Software Guard Extensions (SGX) hardware security module
• HPE is building Mission Critical DLT but installing Corda on Nonstop Servers for rapid Blockchain-out-of-a-Box solutions
• Amazon and R3 have partnered together to have Corda available on AWS Marketplace, which allows AWS users to develop CorDapps or deploy example CorDapps from R3 directly from AWS Marketplace.
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