This document discusses using distributed ledger technology to create an efficient platform for negotiations between brokers and insurers for commercial property and casualty insurance. It outlines the current challenges with the manual negotiation process and proposes a solution to create a secure, transparent and automated negotiation platform. A prototype of the platform is being developed using Corda and the roadmap includes testing the prototype, expanding functionality and establishing governance before a full market launch in early 2019.

1. Distributed Ledger
Marketplace
Lorena Riva
Principal – Blockchain leader Italian Insurance Practice
Capgemini Italy
London - Sept 2018

2. 2© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
The Distributed Ledger Marketplace

3. 3© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
Insurance for commercial
property and casualty
Market overview
▪ The market concerns the insurance
of commercial property against
hazards such as floods and fires in a
European country, and liability
insurance against hazards such as
customers getting injured in stores
▪ Most of these contracts between
clients and insurers are realized
through brokers
▪ Negotiations in this market currently
take place via phone calls, e-mails,
and physical meetings
Main challenges
The negotiation process lacks
efficiency due to the following reasons:
▪ It is mainly manual
▪ There is an absence or low
utilisation of a common/unique
platform for data exchange
regarding the negotiation
▪ There are no universally agreed
upon standards for the information
required to express interest in a
quotation and to complete a
quotation

4. 4© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
Our solution aspirations
Secure
communication
and storage
Transparent
audit trails
Structured
negotiation
Easy on
boarding
Smart data
management
Highly
automated
To build an efficient, transparent, secure, and
easy to use platform for negotiations between
brokers and insurers

5. 5© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
A Bird’s Eye-View of the solution
Broker
Broker Insurer
Insurer
Insurer
Opportunity
Sending
Insurer
Interest
Submission
Sending
Submission
Assessment
Quotation
Analysis
Firm Order

6. 6© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018 6
The Corda platform includes
APIs to integrate the node
with legacy systems of the
stakeholder and automate
internal processes
Frontend
Node
Tamper-resistant
ledgerTransactio
ns
State workflow
Messaging
Security mngt.
Internal
API
Legacy systems
Portfolio system
Business intelligence
Channel frontend
Accounting
Document
management
Legacy integration
The nodes are
implemented using
standard Corda
architecture customized
for our purposes
Node architecture
The Corda node module
provides a rest API to
integrate with frontends.
For the Prototype, the
frontend has been developed
using AngularJS
Frontend integration
External
API
External
API
High level IT landscape

7. 7© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
POC - Use case 1
In this first scenario, a broker and insurer can bilaterally negotiate the
insurance of commercial property
A Simple Negotiation
Broker
Insurer A
Insurer B
Attest interest
in quotation
Expression
of interest
Broker sends
full data
set and
proposal
Negotiation
phase/
Send quote
letter
Send firm
order
Give final
confirmation

8. 8© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
In this second scenario, a broker and two or more insurers can negotiate the
direct co-insurance of commercial property
A co-insurance negotiation
Broker
Insurer A
Insurer B
Send full data set
and proposals
Quotation
confirmation /
Quote letter
Check the coherence
between the quotations
and merge them /
Send the firm order
Send final
confirmation
30%
70%
POC - Use case 2

9. 9© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
Solution goals Shared ledger
contribution
An efficient, transparent, secure, and
easy to use platform for negotiations
between brokers and insurers
Transparent
Audit Trails
Smart Data
Management
Highly
automated
Easy on
boarding
Secure
communication
and storage
Structured
Negotiation
▪ Confidence in state of
negotiations
▪ Easy to resolve inconsistencies
▪ Reduction of counterparty risk
▪ Good auditability

10. 10© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018
Project Success
Change
Management
Integration with
Existing Environments
Operational
Improvements
Use of the
Technology Toolbox
Revision of
Business Models
Better Management
of Regulations
Building of
Ecosystems

11. 11© 2018 Capgemini. All rights reserved.Distributed Ledger Technology for Financial Institutions | April 2018 11
Q4-2018
Q1-2019
2019
Today
(phase 3)
Full Platform in
Production
Extend the
functionality of the
Platform to new
types of products
Enrich the ecosystem with
additional services and
processes
Decision & Action
about Governance,
IP Rights,
Fundings
Q3-2018
• Introduction of external information
provider (es. Dun&Bradstreet)
• Qualification of external services
(Outsourcing Data Entry/OCR/...)
• Processes extension integration with
Sales and Post Sales
• Get the prototype
ready to manage
the volume of the
production
activities
• Set up the
production
ecosystem with
all related system
integration
activities
Strategic exploration
of new business
models and products
on the basis of DLT:
Liability, Casualty,
Marine, ...
Febr 2019:
Market in place
Oct 2018: Mou
defined
Roadmap

12. 12© 2018 Capgemini. All rights reserved.
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