Insurance Innovation Award-Metlife Innovation Centre

1. INSURECHAIN:
PARAMETRIC INSURANCE on BLOCKCHAIN
Project Introduction & Plan

2. 2
InsureChain is a LumenLab project with the potential to
radically simplify insurance for our customers and
significantly reduce backend costs in the long-run.
At LumenLab, we explore and experiment with
disruptive technology to create innovative
Life and Health solutions for MetLife’s customers.

3. 3
InsureChain is an experiment to test simpler User
Experience on mobile with a backend on BlockChain
High friction
customer
experience
Instantaneous parametric underwriting
and policy issuance on the mobile phone
Secure, automatic and timely exchange of
consistent transaction records among key
stakeholders
Complex back
office
TODAY… …REIMAGINED
InsureChain is an InsurTech
experiment to be conducted
initially with 300 under a
regulatory sandbox, 100%
backed by Swiss Re, to prove
points
WHAT IS INSURECHAIN?
A
B
A B&

4. 4
The InsureChain
solution can enable
simpler and cheaper
products for
new risk pools INSTANTANEOUS
UNDERWRITING
TIMELY CLAIMS
PAYMENT
OPERATIONAL
EFFICIENCY
DATA PRIVACY
GUARANTEED
MOBILE APP BLOCKCHAIN

5. InsureChain offers parametric insurance using any data
source for underwriting on the mobile…
Customer downloads App and
gives App consent to retrieve
data from a third party
Policy gets deployed as a smart
contract and automatically stored
on the Distributed Ledger (DL)
Upon UW approval and policy
issuance, customer prompted
to make payment
App runs underwriting rules
based on the data
UW
rules
20 seconds 1 min 2 mins 2+ mins
5
MOBILEAPP
PARAMETRIC
UNDERWRITING
PAYMENT SMART CONTRACT

6. …and leverages blockchain to automatically trigger a
payout and eliminate claims
Event data triggers Smart
Contract on the DL
…Immediate claims paid
automatically to customer –
NO NEED TO
MAKE ANY CLAIMS
EVENT
DISTRIBUTED
LEDGER(DL)
INSURANCE
TRANSACTION
AUTOMATEDCLAIMS
PAY OUTTRIGGER
The Smart Contract
executes the payout rules.
If data indicates occurrence
of a payout event, then…
The customer data gets pushed into the
BlockChain, which links the Insurer, Re-Insurer,
regulator and the data provider (Oracle)
Hospital visit
Doctor visit
Death
INSURER
Re-INSURER
ORACLE
REGULATOR
Some time later 20 seconds 40 seconds 1 Min
6

7. Distributed LedgerTechnology vs. CentralisedArchitecture System
Transparency
Data records openly shared across
participants, including exactly where & how they are
used
Data is controlled by a single owner resulting in restricted
information sharing and reliance on legal means
to establish trust
Immutability
Data records stored in blocks and linked in a chain,
cryptographically tamper-proof
Data records maintained by a central authority with risk
of a single point of failure
Auditability
Audits or queries on provenance and changes are
instantly visible on the ledger
Data provenance can be obfuscated and requires
considerations to ensure data history and auditability
Efficiency Data records synchronized in a decentralized
system, saving time and operational effort to reconcile
Request/ response design requires complex
operational procedures to reconcile
Cost
Costs of building simpler, reusable DLT systems are
1/3-1/10th of total cost of centralized systems
Off-the-shelf centralised architecture systems have
hidden integration costs
Why Distributed Ledger Technology (DLT)?
Distributed Ledger Technology (DLT) offers inherent trust and security in a system with greater transparency, data
immutability and auditability, while delivering efficiency at lower cost compared to a centralized architecture system
7

8. 8
Who’s on the InsureChain team at LumenLab?
Zia Zaman
CEO, LumenLab
Executive Project Sponsor
zia@lumenlab.sg
Subhajit Mandal
Director, LumenLab
Project Lead
subhajit@lumenlab.sg
Jonny Wood
Director, LumenLab
Project Advisor
jonny@lumenlab.sg
Janet Yip
Senior Manager, LumenLab
Project Manager
janet.yip@lumenlab.sg

9. 9
Who are our partners?
100%
Reinsurer
Product
Owner
Electronic
Health
Record
(EHR)
Provider
Technology
Developer
External
Legal
Counsel
Regulator
AML
Screening
Service
Provider
AML Policy
Advisor

10. 10
InsureChain applied to new risk
pools can both reinvent the customer
experience of insurance and deliver
deep operational efficiencies for
insurers.