The Institutes RBA Alliance Christopher G. McDaniel 1 | The - PowerPoint PPT Presentation

The Institutes RBA Alliance Christopher G. McDaniel 1 | The Institutes – RBA Alliance

Blockchain For Insurance Overview 2 | The Institutes – RBA Alliance

Why Blockchain or DLT for Insurance? Pain Points Benefits Insured Increased Automation • Poor Customer Experience through Smart Contracts • High Premiums Improved Record Permissioned Data Sharing, • Slow Entry into Emerging Keeping Automatic Updates Markets • Weak Product Innovation Insurer • High Administrative Costs • Costly Intermediaries Streamlined Access to Lower Costs Customer Data • Fragmented Data Sources • Manual Processes Increased Trust and • Fraud Prone Auditability • Stringent Regulation 3 | The Institutes – RBA Alliance

Client Benefits Increased Efficiency Eliminates duplicative processing so that processes can be done once, rather than multiple times by both the carriers and distributors. Streamlined processing can be done in real-time, minimizing transaction completion times, and providing complete transparency to all parties including the end customer. Reduced Risk Blockchains contains a certain and verifiable record of every single transaction ever made. This Increased mitigates the risk of double-spending, fraud, abuse, and manipulation of transactions. Blockchain Efficiency security is considered the best in the world globally. In addition, there are strong controls for what data is transparent to other parties, and which is held proprietary. Compliance monitoring can be controlled on a much more granular level. Improved Improved Customer Service Market Reduced Risk In the insurance batch transactional world, the Distribution Channel has little to no insight into Position what transactional status is at the Carrier, and the End-Customer has no transparency at all. Blockchain brings the flexibility for all to know instantly the status of any process or transaction by all interested parties. It also enables much more self-service capability by the end customer, Blockchain reducing the need for call center support personnel. Benefits New Market Opportunities Once the common Blockchain foundation is in place, and select applications are built on top, it Improved will be much easier to bring new products to markets not yet served. These processes will New Delivery Customer occur much quicker, because of the shared nature of the Blockchain. Methods Service New Delivery Models New delivery models such as direct-to-consumer will be greatly simplified through the implementation of Blockchain. Because of the universal access capability, new products can New Market be made available to a wider set of delivery models such as Broker/Dealers, BGAs and Bank Opportunities Channels. Improved Market Position Blockchain is an access equalizer for all participating firms. The applications built atop the blockchain allow forward thinking organizations to shine. Aggressively pursuing the development of new and innovative applications on the Deloitte model will enable firms to leverage their investment in innovation to improve their market position. 4 | The Institutes – RBA Alliance

RBA Overview 5 | The Institutes – RBA Alliance

RBA Alliance US P&C Launch April 2018 June 2018 July 2016 February 2017 December December 2018 PSP’s On -boarded Framework and RBA TI Board Requests 2017 Engagement of Path to Use Case Thought Launch of Four POI Minimum Production Cohort 1 Development Leadershi Working Groups Viable Product Begins p Begins Members Join with Nationwide December 2016 June 2017 January 2018 May 2018 September 2018 February 2019 • Demonstrated Recommendations 40 Companies Use Case PSP Contracting Test version of Involved. Four POC’s on Blockchain Committee and Complete MVP/MVN completed POI and FNOL Consortium completed. RBA Working Groups DLT Platform Canopy 2.0 Framework production Circulated to TI formation approved kicked off Selected ready use Board Technical Partners Use Cases Awarded cases to PSP’s • Completed ROI selected study and will be published 6 | The Institutes – RBA Alliance

RBA Alliance US L&A Launch September 2017 • LIMRA Blockchain May 2018 Advisory Council formed RBA & Deloitte facilitate 2-day • LIMRA & RBA Alliance ‘Lab’ @ LIMRA headquarters with October 2018 signed memo of LIMRA 18 LIMRA member companies to understanding Blockchain identify initial Use-Case Advisory Council opportunities Meeting December 2018 March 2018 September 2018 Mortality Monitor RBA introduced to • LIMRA and RBA advance from Working Group LIMRA Blockchain MOU to formal contract – commences Advisory Council appointing LIMRA as L&A, . Retirement and Group insurance administrator. • LIMRA & RBA announce Mortality Monitor as L&A sector inaugural Use Case 7 | The Institutes – RBA Alliance

RBA Components Use Case Development Standardized Framework Non-Profit Consortium Universal Applications Carriers, Brokers Built By RBA & Reinsurers Software Factory Available To All Members Industry Organizations Proprietary Applications Built By 3 rd Parties or Members Who Want To Retain Their IP While Still Government Having Access to Members Organizations 8 | The Institutes – RBA Alliance

Sectors & Geographies Property & Casualty Surety Bonds Life RBA Canada RBA USA Workers Comp Annuity Reinsurance Commercial RBA EMEA RBA Asia Pacific 9 | The Institutes – RBA Alliance Group/Health Retirement

Participants in the RBA Alliance P&C Members Providers L&A Members Non-Profits Civics …more to be Announced soon Civics Collaborators …to be announced …to be announced …to be soon soon announced soon 10 | The Institutes – RBA Alliance

Canopy Overview 11 | The Institutes – RBA Alliance

Benefits of Canopy Canopy leverages a permissioned ledger for recording business transactions with trusted parties REAL-TIME TRANSACTIONS Canopy optimizes workflows and enables the sharing of previously siloed data necessary to Real-time Tx triage and communicate, in real-time, across the insurance industry. Notaries NOTARIES No double spending with the potential for transaction validation across different consensus algorithms. SEMI-PRIVATE LEDGER The need for consensus across all parties in the network has been limited between the participants of a transaction. This architecture affords scalability and data privacy. Semi- Private Ledger REVERSIBILITY Canopy allows for failed contracts to be disputed by entities involved in the transaction. PERMISSIONED NETWORKS Reversibility All code contracts are backed by a legal attachment. This makes transacting parties aware of whom they are transacting with. Permissioned Networks 12 | The Institutes – RBA Alliance

Canopy 1.x – 2.x 2017 2018-2019 Focus on Adoption 1.x 2.x Subrogatio Subrogatio POI POI n n (POC) (BUILD) (WORKING (POC) GROUP) Parametric FNOL Parametric FNOL (WORKING (POC) (POC) (BUILD) GROUP) • Canopy 1.0 – Limited production • Application Programming Interface • Canopy 2.1 – Minimum Viable Network (In progress) • Canopy 2.2 – Production deployment (Expected early 2019) 13 | The Institutes – RBA Alliance

Canopy 3.0 2018 - 2019 2019 - 2020 2020 Focus on Adoption Focus on Features 2.x Multi-Ledger 3.x 4.0 Subrogatio POI 2019 Use Case 2019 Use Case 2020 Use Case 2020 Use Case n (BUILD) (BUILD) (BUILD) (BUILD) (BUILD) (WORKING GROUP) Parametric FNOL 2019 Use Case 2019 Use Case 2020 Use Case 2020 Use Case (WORKING (BUILD) (BUILD) (BUILD) (BUILD) (BUILD) GROUP) • Application Programming Interface IoT Analytics Module 3 Module 4 • Canopy 2.1 – Minimum Viable Network (In progress) • Canopy 2.2 – Production deployment (Expected early 2019) 14 | The Institutes – RBA Alliance

Use Cases 15 | The Institutes – RBA Alliance

Blockchain and DLT Use Cases Range Across Entire Insurance Value Chain Products, Pricing & Underwriting & Risk Policyholder Acquisition Finance, Payments & Regulatory & Claims Management Distribution Management & Servicing Accounting Compliance Parametric Insurance Provenance Policyholder Acquisition First Notice of Loss Data Subrogation Motor Vehicle Proof Sharing of Insurance Oracle aggregation Data Sharing and Risk Document Reconciliation Asset Transfer Workers Comp Bill Real-time Regulatory service Registries (Placement (Certificate of Title – IoT) Review and Medical Reporting Documentation) Claims Processing Telematics or IoT-Based Self-sovereign IDs Linked Surety Bonds Worker’s Compensation Reinsurance Agent/Broker Use Cases to Insurance (verification/validation) (EMR) (Premium/Loss Licensing Cessions/Execution of Treaties) Insurance for Digital Twinning Certificates of Insurance Fraud Registry Technical Accounting Sovereign ID transactional purchases (maintaining/sharing of (KYC/AML) financial records) Microinsurance Marine Use Cases Policy Cancellation and Multi-layer claims New Forms of Raising Auto Titles Mobile Insurance for Non-Payment (use of settlement Capital (Crowd Developing Countries smart contract to trigger) Sourcing) Peer-to-Peer Insurance Creation of a Repository Onboarding and Policy Marine Claims Multiple Payees Education Licensing of Truth for Underwriters Administration/Customer Management Service Requests 16 | The Institutes – RBA Alliance