INSURANCE – BLOCKCHAIN

BLOCKCHAIN VALUE PROPOSITION

Better pricing & Risk management

  • Decentralized career consortium

  • Automatic verification on real time

  • Real time analytics

Blockchain Value Proposition
  • Self executing smart contracts

  • Straight through processing of routine claims & policy admin transactions

  • Prevent fraud

  • Improved customer experience

Beyond Best-in-class

  • Distributed and Digital

  • Reduced human error and no data duplication

  • Reduced processing time and Transaction cost

Reaching the unreachable
  • Resolve micro insurance challenges
  • Better pricing due to reduced cost.
New types of insurance
  • P2P, Share economy, Spot Insurance and Hybrid

  • Better pricing due to reduced cost

  • Social media and crowd sourced prediction

Insurance Blockchain – Business Drivers

Smart Contracts provides Insurers, Agents, Customers and other service providers to manager policy administration and claims transactions in a trusted, transparent, responsive and irrefutable manner.

  • KYC once done is registered in blockchain.
  • Personal data remains with the customer.
  • No Repeat data entry.
  • Claims auto-triggered when insured event occurs

  • Auto verification of policy holder identity, contract validity etc.
  • Use of information from social media profiles & 3rd party sources such as Hospitals, Police.
  • Controlled access to data for Reinsures

  • Blockchain products with short lifecycles like car rental insurance, travel policies etc more meaningful and viable.
  • Due to lower production cost, and better customer engagement. Paves way for top up covers, or riders for short duration of perceived high risk.

  • Accurate reconciliation of Commissions
  • Ceded premium
  • Reinsurance claims.

Ability to identify, prioritize work items, and trigger workflows
Blockchain on Insurance use cases

  • Agent contracts
  • Customer details Management
  • New Business Details

  • Verification of Health Records
  • Verification DMV Records
  • Verification of Pharamacy reports

  • Policy Renewal/ Re issue
  • Endorsement
  • Policy Transactions

  • Manage Fraud
  • Claims automations
  • Claims Payment

High level Policy processing flow

Now and Future

Legacy platform Blockchain platform
  • Consumer data is especially valuable telematics and Usage-Based Insurance. But, insurer, not customer, owns usage data and associated benefits
  • Consumer data does not migrate with customer from one insurer to the next
  • Consumer data exists independently of insurer
  • Data access can be granted by consumer through their public key to any third party
  • Enhanced risk-assessments and underwriting made possible by more complete behavior history
  • Claims typically processed manually, requiring extensive central validation
  • Manual processing can introduce both decision subjectivity and errors
  • Subsequently claims processing is slow, complex and subject to human error
  • Smart contract which enforces and pays out against insurable event without manual administration
  • Claims processed and paid on a logic-based system requiring all information to be complete
  • Distributed validation network ensures only legitimate and complete claims are paid out on basis of independently verifiable oracle feed
  • Claims processing and management is transparent, accurate and irrefutable
  • Tracing provenance relies upon faithful record-keeping along with item
  • No secure documented trail back to origination of article (e.g., art, diamond)
  • Initial provenance recorded with immutable time and date stamp and proof of existence (e.g., photograph)
  • Subsequent ownership and location can be recorded in secure, immutable, chained history of object
  • Growing threat from fraud based on false claims for staged incidents
  • Claims often made against several policies held by independent insurers
  • Fraud detection almost impossible without cross-party industry data
  • Distributed network independently validates (by consensus) contracts and claims to be paid
  • Network verifies true identities to avoid duplication
  • Storing history of claims in distributed cross-industry database enables detection of fraudulent behavior patterns

Auto Claim processing use case

Implementing IoT enabled Blockchain platform

1. Understand As Is Process

  • Identify Risks & Weaknesses

  • Classify Risks and Weaknesses based on extend impact and probability

2. Create a Road Map

  • High Level Solution approach using Blockchain and IoT (optional) to address the identified risks and Weaknesses

  • Prioritized set of functionality for implementation.

3. Pilot & Collaboration

  • Implement a pilot usecase

  • Collaborate with suppliers and partners

  • Create a reference slice

4. Scale
  • Scale progressively to implement the Road Map

INVOICE TRANSMISSION

Requirement Understanding

  • Client – a vendor issues invoices to their customers.

  • Issued invoices are digitally signed & sent to a folder.

  • Customers access the invoices by authenticating their certificates.

  • Often times Customer does not have a certificate & the invoice is inaccessible.

  • Also the invoices generated from SAP system aren’t encrypted, posing a security concern.

  • There is also financial impact on the business as customers cannot make payments on time – owing to unavailability of invoices.

Enterprise Blockchain Solution for Invoice Management

Requirement Understanding

  • Manufacturers of goods and services issues digitally signed invoices to multiple customers.
  • Invoices are issued from Manufacturer’s internal ERP system such as SAP
  • As per the current process, invoices are stored in a specified server location, for Customers to access
  • In some cases customers are unable to access the invoices, due to errors in encryption/installation of digital certificates etc.

  • 1.Manufacturer is looking for a Secure invoicing solution, that will seamlessly integrate with multiple customers, and enable both customers and the manufacturer to identify and track invoices, provide a basic workflow for managing invoices, and be able to create basic MIS reports.

Solution and Approach – Flow Diagram

Blockchain Value Proposition

One Central Platform
  • Easy and Faster Document Management & transmission.
  • Fraud prevention
  • More transparency
Event-triggered smart contracts

  • Self executing smart contracts

  • Straight through processing of routine invoices can be enabled

  • Prevent fraud

  • Improved customer experience

Beyond Best-in-class
  • Distributed and Digital
  • Reduced human error and no data duplication
  • Reduced processing time and Transaction cost
Provenance
  • Instant Transfer of invoices Secure, Triggers a workflow

Our Solution

We propose an enterprise blockchain solution based on Hyperledger platform to orchestrate the invoicing process

Create the Platform

  • Manufacturer hosts the blockchain invoicing platform

  • All Customers are onboarded to the blockchain invoicing platform as peers

  • Each Customer has unique credentials to identify them on the blockchain

Invoice Management for Manufacturer

  • Manufacturer Issues invoice from the ERP system.

  • Encrypted Invoice Document is stored in a secure file store

  • Invoice transaction is triggered on blockchain platform

  • Blockchain platform executes the smart contract, validates correctness and completeness, adds the invoice to the blockchain

  • Manufacturer’s in basket gets the entry of the newly issued invoice along with the correct status – such as ‘Issued to customer’.

Invoice Management for Customer

  • Customer receives the notification of a new invoice in the customer in-basket on blockchain platform.

  • Customer clicks on the link to securely access the invoice from file store.

  • Customer processes the invoice – (Pay the invoice, send back for revision, cancel the PO etc.)

  • Change in status is reflected on the Manufacturer’s inbasket

Fejlett – Blockchain Services Offering

BLOCKCHAIN INCUBATION AS A SERVICE

  • Trends Research

  • Design Thinking-led assessment for use case identification

  • Technology assessment

  • Rapid Prototyping

  • Blockchain CE

BLOCKCHAIN SERVICES

  • Technology Advisory

  • Consulting Services

  • Development Services

  • Integration Services

  • Testing Services

BLOCKCHAIN SOLUTIONS

  • Industry specific Blockchain Solutions (e.g. letter of credit, loyalty management, energy trading etc.)

  • Solutions for integration with enterprise applications

BLOCKCHAIN PLATFORM

Scalable and asset agnostic platform that enables ready–to–onboard permissioned networks