A few months ago our blockchain consultant Sam Wouters wrote a post on LinkedIn about “How blockchains can be used in Insurance”. One of the few thousand readers was John Davison, CIO at First Central Group. This is the parent company behind several insurance and reinsurance businesses, such as UK-based motor insurer 1st Central.
Blockchain use case in insurance
John had 2 use cases in mind and invited us to come help his architects and developers to figure them out. So Sam and Ward flew over to Guernsey for 2 days of workshops with 2 objectives.
1. Create a thorough understanding of blockchains.
2. Determine whether it makes sense to use a blockchain for the 2 presented use cases.
For the first objective we gave an introduction to open and private blockchains, a deep-dive into where we stand in the Financial and Insurance industries and a presentation on smart contracts.
It was most impressive to us how quickly the team picked up on the blockchain knowledge. These are definitely some of the smartest people we’ve worked with so far.
We solved the first case pretty quickly. It was about ensuring data integrity across different steps in the Insurance value chain, to save large amounts of time and money on the auditing process. While that sounds like a heavy operation, we decided on an elegant, lightweight solution. It can be implemented using either open or permissioned blockchains and FCG will start working on it later this year.
The second case was about managing insurance capacity, a process that helps insurers and reinsurers assess their risks. Today this is a slow process which makes running an Insurance business a lot more risky and complex.
We can’t tell you anything more about our solution right now. FCG will create an MVP to see whether it works as well in practice as it did on the whiteboard. It’ll be more challenging but potentially highly disruptive for the Insurance industry.
We have a lot of faith in the team’s capabilities to execute the plans and we look forward to further helping them do so.
“At FCG we’re constantly evaluating technology advancement across all industries, looking for disruptive opportunities in our current businesses. Sam and Ward from Duval Union Consulting are well-known and well regarded experts in blockchain and associated technologies and it was an easy decision to ask them to collaborate with our in-house technologists here in Guernsey.
We set out to deliberately challenge the current insurance paradigm, testing whether and how the technology underpinning bitcoin could be utilised within our vertical.
As CIO of FCG it was really encouraging to see how the two day whiteboard session unfolded, with valuable input from all attendees. The output of these sessions is intriguing, promising a revolutionary approach to traditional retail insurance – I eagerly await a proof of concept later this year.
Many thanks again to Sam and Ward for their input, their constructive challenge and their contribution to FCG’s forward thinking. I look forward to working with them over the coming months”
If you’re looking into how blockchains can be used for your business, contact us for a presentation, workshop or bootcamp!
Guernsey itself was a lovely place to visit by the way!