Innovation Project Summary Cookhouse Lab
Blockchain & Insurance
The objective of this initial project was to begin the Blockchain Journey and see where our collective ideas can take us.
What is Blockchain and how can it be used to improve insurance?
Blockchain, is a transparent secure chronological public ledger. It’s said Blockchain will have the same impact on global society as the internet. It will revolutionize payment processing. It will democratize banking for the globe. It will not just disrupt payment processing and financial services, but every sector of the world from politics to land title.
SWOT for Blockchain
Identify and prioritize customer and business pain-points across the insurance lifecycle.
Develop an understanding of Blockchain including high-level technical functionalities, history, existing use cases and its potential future applications.
The success of this initiative would depend on all provincial regulators committing to full cooperation and participation at the outset.
Over the 4-week project period, the project team developed a comprehensive list of 34 Blockchain use cases, and created a selection criteria to determine the top three use case categories among them.
AUTOMATED INSURANCE PRODUCTS / CLAIMS PAYMENTS
Insurance companies coordinate the payment of claim with smart contract, automating the process from notification to payment.
COMMUNICATION AND INTEGRATION
The Blockchain’s shared ledger provides permissioned parties, such as the contractor, insurers and reinsurers, with clear visibility to the characteristics of the risk and financial information pertinent to bond issuance.
INDUSTRY WIDE BLOCKCHAIN APPLICATIONS
Fine-tuned access control: Easy to pool data & restrict access to sensitive fields. High security/integrity of the data. Anti-fraud database. Broker/insurer platform for licensing requirements.
Brings Improved Data Quality through New Digital Tools.
Facilitates the creation of new products and services with an enhanced customer experience.
Launches a Digital Process with Increased fraud detection.
Increases Profitability for all the stakeholders.
The Blockchain & Insurance project took place over four weeks at the Cookhouse Lab premises in Toronto, Canada.