Smart Contracts: Blockchain's Killer App? (Insurtech Rising 2016)
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The document discusses smart contracts as a significant application of blockchain technology, emphasizing their ability to automate processes and reduce costs. It highlights the advantages of shared ledgers and agility in competitive environments, particularly in the context of reinsurance processing. The author illustrates these concepts with an example of how smart contracts can streamline various insurance-related tasks.
Smart Contracts: Blockchain's Killer App? (Insurtech Rising 2016)
- 1. Smart Contracts Blockchain’s Killer App? Jacoby Thwaites jacoby@sparkl.com @sparkl
- 2. According to Merriam Webster: An order or arrangement for a hired assassin to kill someone "His enemies put out a contract on him..." What is a contract?
- 3. One Minute A Smart Contract is . . .Turn to your neighbour! Together, define the term Smart Contract in 1 sentence
- 4. Smart Contracts It executes on behalf of the contracting parties. What makes a contract smart?
- 5. What problems do they solve? Automation reduces cost Shared ledger reduces reconciliation Agility sharpens competitive edge Cost Complexity Competition
- 6. Example: Inwards reinsurance processing Smart Policy Cedant Reinsurer Distributed Ledger Technology Audit Trail Policy Setup Contracts & Schedules Review & Test Deploy & Digitally Sign Initial Ledger Balances Pay Premiums Calculate Inwards by Contract Settle Claims Process Reinstatements Upload Outward Claims
Editor's Notes
- #6: Smart contracts close the gap between when events happen and when they are verified by an auditor. Auditors can observe and understand insurance contracts at high-level in real-time with a somewhat hands-off approach. Insurance contracts are typically complex and hard to understand because of the legal language used. Also process can be drawn-out Ongoing operational costs need to be cut down Dealing with uncertain and disruptive landscape New industry regulation introduces IT complexity