PwC has created a Proof of Concept (PoC) working prototype application to demonstrate how blockchain technology might make the claims process more efficient. The potential application of blockchain technology is gaining momentum in the insurance market and is a particular focus for the TOM Innovation Council.
The focus of the prototype is the enhancement of interactions between multiple London Market parties involved in a claims process - third party administrators, claims approvers and brokers. The automated process includes claims creation, supporting documents, invoice creation and approval or rejection of invoices.
The key strengths of the prototype application are:
- Efficiency gains of sharing a single shared view of the claims data and electronically updating this through an automated and orchestrated process.
- Each party has its own copy of the shared data and views a common shared “single view of the truth”, therefore no need to for a firm to reconcile its data against other copies.
- There is no single point of failure. If a party in the blockchain network is down the other parties can access its records and transact.
- Multiple parties can have access to the claims process at the same time.
- The technology provides a complete and tamper-proof transaction history. This can reduce disputes and the potential for fraud and enhance the auditability of the transaction.
- Smart contracts can automate business rules. The PoC demonstrates the automation of approval for claims below a certain threshold.
- Documents are “locked down” - they cannot be tampered with and create an auditable history.
LM TOM Innovation events:
TOM Innovation is holding a series of informative events in April.
- Machine Learning - How could it affect your role? April 3rd in Lloyd’s. Register and find out more here
- The second Future Leaders Debate: “Make Insurance Great Again!” April 5th at the WeWork office space from 6pm. Register and find out more here.
- InsurTech delegation April 6th from 2pm: LM TOM Innovation will take a group of 20 U35s to the Start Up Boot Camp for an afternoon of InsurTech start-up pitching and demos. Email: email@example.com for more information.
If you would like to get involved in London market innovation projects or events, please contact Sebastian for details.
Insure core is hosting two industry events on 16th and 29th March at its offices at Aldgate Tower, London E1 8FA.
Insurercore will demonstrate its app-based directory for brokers and underwriters. The up-to-date record of the appetites of brokers and underwriters for risk will, says Insurecore, facilitate the business process in the London Market.