Year 2018 - INSURTECH & NEW MARKETS 保險科技興新市場

2. Blockchain-Backed Mutual and Peer-to-Peer Insurance Mutual and peer-to-peer (P2P) insurance are gaining in popularity because they can offer greater transparency and trust. Using the smart contracts described above, insurers could use blockchain to succeed in the P2P and mutual markets. Insurers can provide an online platform where customers post insurance demands. By using historical data and applying risk models and analytics, a premium calculation with expected return could be posted. Interested consumers can then subscribe via the online system. The administration and execution processes are simpler, almost fully automated, transparent and cheaper than in a traditional set up. Also, the investors know their maximum exposure as the amount defined in the smart contract. 3. Internet of Things (IoT) The Internet of Things (IoT) is the connection of devices to the Internet via software, sensors and network connectivity. Smart homes, car telematics and wearables are hot IoT areas for insurance companies. IoT is shifting insurers to a more proactive way of interacting with their customers. They are able to reduce costs by accurately assessing clients' risk levels and then adjusting premiums. By offering discounts and rewards for safe behavior and improved habits, insurers can help change customer behavior and offer a more personalized, tailored customer experience. If the smart contract is used with IoT smart devices and backed by blockchain, this will enable the IoT devices to communicate with the insurance smart contract automatically, with transactions and contract validations taking place in real time. Reduced insurance costs and minimization error. One example could be claims management in property & casualty insurers by collecting claim data from cars and smart homes. 4. Fraud Detection One of blockchain technology’s best features and value propositions is the level of trust it raised. It can reduce fraud, as it can validate authenticity, ownership, and provisioning of goods, as well as the legitimacy of documents. By connecting to external parties, Blockchain can access police theft reports, and detect patterns of fraudulent behavior related to a specific identity. 5. Improved Underwriting Process Today’s underwriting process is still highly dependent on paper forms, with minimal online- enabled applications, and email communications between the underwriters, broker and client. When claims are filed, there is often disagreement about which information was shared, by whom and when. These lead to lengthy litigation and cause problems for underwriters and their clients. Blockchain can resolve these difficulties by facilitating a more transparent, simplified and faster process. Mr. Henry Au CEO of Finally.hk CEO of Fireswirl Technologies Inc. (TSX:FSW) Director of Irish Chamber of Commence 33