Blockchain & Insurance

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.

4

WEEKS

TORONTO

2017

8

MEMBERS

3

USE CASES

Problem

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.

WHY?

SWOT for Blockchain

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

DISCOVERY

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.

Discovery Blockchain use cases

SOLUTION

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.

1

AUTOMATED INSURANCE PRODUCTS / CLAIMS PAYMENTS

Insurance companies coordinate the payment of claim with smart contract, automating the process from notification to payment.

Blockchain Use case 01

2

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.

Blockchain Use case 02

3

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.

Blockchain Use case 03

ESTIMATED IMPACT

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.

timesaving

Time Saving

automated
transactions can be triggered nearly immediately and reliably

costefficiet

Cost to Serve

reduction
the efficient exchange of accurate information enable lower transaction fees

customerfeed

Human Error

decrease
no need for human intervention and validation. Mistakes are less likely to happen

RESULTS

The Blockchain & Insurance project took place over four weeks at the Cookhouse Lab premises in Toronto, Canada.

15

Empathy Maps

6

Expert Presentations

34

Use Case Ideas

1

Selection Methodology

3

Selected Categories

6

Selected Use Cases

1

Innovation Report

3

Project Presentations

PARTICIPANTS

We also offer intro sessions that provide insurance professionals with the opportunity to experience our Cookhouse Labs methodology and a sneak peek at what it’s like to co-create and collaborate with our global community. If you are not a Cookhouse Labs member and are interested in finding out more, check out our membership benefits!

[Blockchain Series: Part 1] Revolutionizing the Insurance Customer Experience

Amongst the hottest innovation trends today, Blockchain is often mentioned.  Although Blockchain is often just associated with cryptocurrencies like Bitcoin, this technology has enormous potential to impact the future customer experience. From our first collaborative Blockchain project, we’ve learned that countless insurance use cases are ripe for exploration. These use cases span from back-office improvements, fraud detection, to positively impacting the role of insurance from the consumer’s perspective. 

Let’s take a moment and think about what the future of insurance will look like once Blockchain is widely used and implemented.

Onboarding & Identity

Engaged to be married and to start a family, Julian looks to purchase a home.  After he gets his financing in order, he is then proactively presented with several “peace of mind” options.  Through his smart device, these options are presented to him as “smart contracts” that Julian can choose from. Instantly executed, Julian selects to protect his family home, car and his health.  No identity, asset or health information is needed as this information is already collected and verified automatically from trusted sources.  

Claims

Several years pass and on one unfortunate day while practicing his culinary skills, Julian’s home is damaged by small home fire. All Julian has to care about is that his family is safe and sound. He does not need to worry about coverage or claims as his IoT devices have already shared the necessary information using trusted sources which then triggers a repair funds to be transferred to his account and a preferred service provider to repair and restore the damage to his home the next day. 

Risk Prevention

Over the years, Julian continues to be a loyal customer. But unfortunately, he has had a couple of small vehicle accidents during his daily commute. Based on predictive analytics, Julian is gifted a telematics safety device that incents him for safe driving but also acts as a proactive safety measure, alerting him when he is likely to get into an accident. This provides Julian with additional preventative peace of mind while he is travelling for work or for a family vacation. 

Curious about insurance blockchain use cases? You may be interested in: Blockchain & Insurance Management Report

Renewal

As Julian gets closer to retirement, his term coverage is about to lapse.  Julian still visits his physician regularly and is in good health. By pulling information from health record oracles and updating his smart contract accordingly, Julian is presented with a renewal option. Without the need to worrying about lapsing coverage or the need to get any additional information, Julian is proactively presented renewal options on his smart device. With one touch, Julian renews and his “peace of mind” continues. 

The Future is Coming…

Does this sound like science fiction? My son Julian is 1 year old today. Do we really have to wait until he grows up to make this customer experience a reality? The building blocks for making this customer experience real is readily available today through Blockchain innovation.

Co-create with us on our upcoming blockchain projects to move and influence our industry to revolutionize the future of insurance!

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