Unlocking the Power of Blockchain in the Insurance Industry Susan - PowerPoint PPT Presentation

Unlocking the Power of Blockchain in the Insurance Industry Susan Kearney, CPCU, ARM, AU, AAI Product Manager, RiskBlock Alliance 1 | The Institutes Risk and Insurance Knowledge Group

Outline for Today’s Discussion The Building Blocks of Blockchain What Exactly is Blockchain and What Does it Do? Blockchain Applications in Business Why Blockchain for Insurance? The Institutes RiskBlock Alliance Q & A The Institutes RiskBlock™ Alliance

The Building Blocks of Blockchain 3 | The Institutes Risk and Insurance Knowledge Group

Blockchain Stems From Advances in Technology Databases Encryption Computers E ‐ commerce Networks The Institutes RiskBlock™ Alliance

Bitcoin: The Very First Blockchain Originator: Satoshi Nakamoto (pseudonym) 5 | The Institutes Risk and Insurance Knowledge Group

What Exactly is Blockchain and What Does it Do? 6 | The Institutes Risk and Insurance Knowledge Group

Blockchain Fuses Database with Network and Establishes Trust Bloc kc hain: • Adding a nything to le dg e r is pe rma ne nt • E sta b lishe s trust a nd e limina te s middle me n whic h: 1) inc re a se s se c urity 2) te a rs do wn wa lls 3) spe e ds up tra nsa c tio ns 4) impro ve s priva c y 7 | The Institutes RiskBlock™ Alliance

Everything Started with Public Blockchains..They Can’t be Ignored Private/Permissioned Blockchains Business Usage Led to Led to One Example Led to Ethereum Public Blockchains Transactions Smart contracts (e ‐ commerce) (computing) 8 | The Institutes RiskBlock™ Alliance

Blockchain Applications in Business 9 | The Institutes RiskBlock™ Alliance

A Few Non-Insurance Use Cases Under Development 1. Auto mo b ile Sa le s Visa / Do c usig n: Ca r L e a sing 2. Ac c o unting Big F o ur: T riple E ntry Ac c o unting 3. Ba nking R3 a nd E ntE th: Cro ss Bo rde r T ra ding 4. E duc a tio n Ac a de mic Re c o rds 5. E ne rg y Pa id E ne rg y T ra de s 6. He a lthc a re I BM a nd F DA Alig n to Bo o st Pub lic He a lth 7. I nte rne t o f T hing s E the re um I o T Re g istry 8. Ma ss Me dia E nte rta inme nt Disne y’ s Dra g o nc ha in 9. So c ia l Me dia Ste e mI t: So c ia l Me dia o n Blo c kc ha in 10.Supply Cha in Wa lma rt: Supply Cha in Ma na g e me nt 10 | The Institutes RiskBlock™ Alliance

Why Blockchain for Insurance? 11 | The Institutes Risk and Insurance Knowledge Group

Benefits of Blockchain for the Insurance Industry Pain Points Benefits Insured Increased Automation through Smart Contracts • Customer Experience • Premium Scrutiny Improved Record Permissioned Data Sharing, • Slow Entry into Emerging Keeping Automatic Updates Markets • Weak Product Innovation Insurer • High Administrative Costs Streamlined Access to • Costly Intermediaries Lower Costs Customer Data • Fragmented Data Sources • Manual Processes Increased Trust and • Fraud Prone Auditability • Stringent Regulation 12 | The Institutes RiskBlock™ Alliance

Blockchain Use Cases Across Entire Insurance Value Chain Underwriting Policyholder Finance, Products, Claims Regulatory and and Risk Acquisition and Payments and Pricing and Management Compliance Management Accounting Servicing Distribution Data Sharing: Motor Vehicle Parametric Subrogation First Notice Proof of Insurance Insurance of Loss 13 | The Institutes RiskBlock™ Alliance

The Institutes RiskBlock Alliance 14 | The Institutes Risk and Insurance Knowledge Group

RiskBlock Value Proposition First true industrywide risk and insurance consortium cutting across all insurance industry sectors Backed by The Institutes and Multiple Use Case build approaches: Member trusted by the Risk and P&C Insurance Only, Collaborative, Solution Provider Focused, industries for over 100 years RiskBlock Only or a Hybrid of any of these options Engaging LIMRA to bring DLT to the Life, Annuity Philosophy guided by security and Retirement space* and data privacy Collaborating with multiple Platform agnostic, supporting the building industry associations across the of and communication between various Insurance industry current and future flavors of DLT Build once, use many approach Non-biased, industry focused to architecture, use cases and non-profit and member owned reusable tool kit components Certified DLT Professional and Focused on creating real world production Certified DLT Engineer education programs applications that bring value to members Certified RiskBlock Ready 15 | The Institutes RiskBlock™ Alliance Designations for Solution Providers

Q & A Mor e infor mation available her e: http:/ / www.the institute s.o rg / b lo c kc ha in 16 | The Institutes Risk and Insurance Knowledge Group