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Blockchain & Insurance
29 Aug 2016
Ankur Nandwani
wechat: ankur2tenn
twitter: ankcraz
1
Blockchain
● Blockchain is a distributed, public ledger that contains the history of every
transaction on a network
● Underlying technology powering digital currencies like Bitcoin, and Ethereum
2
What is Ethereum?
● Ethereum is a decentralized platform that runs smart contracts:
applications that run exactly as programmed without any possibility of
downtime, censorship, fraud or third party interference*
● Turing-complete scripting language makes it easier for developers to build
complex apps
● Ability for more than just value transfer - moving beyond currency
● Allows for computation to be executed in the blockchain
*https://www.ethereum.org/
3
Smart contracts
● Smart contracts are contracts between parties that are codified on blockchain
● Contracts are automatically executed when a condition is met
4
Traditional
contract
Smart
contract
https://bitsonblocks.net/2016/02/01/a-gentle-introduction-to-smart-contracts/
Ethereum smart contracts
● Examples of Ethereum smart contracts
○ Prediction markets: Augur, allows you to forecast events and be
rewarded for predicting them correctly
○ P2P: WeKeep (Insurance)
○ Identity management: uPort
○ Investment: WeiFund
5
Insurance smart contracts
● Insurance agreements can be codified into Ethereum
Smart Contract
● Process
○ Insured sends premium payments to smart contract
○ Smart contract monitors trusted data sources for qualifying events
○ Funds are released automatically in the case of a qualifying event
● Advantages
○ Lowers operational costs
○ Reduces fraud
6
Insurance smart contract examples
● Auto insurance
○ Smart contract periodically checks police reports, DMV records, telemetry
and app data
○ If there is a qualifying event, smart contract can change rates, issue
warning, or pay out claim
● Life insurance
○ Insured person specifies a beneficiary with smart contract
○ Smart contract periodically checks city and hospital records for medical
events and life/death records
○ If there is a qualifying event, smart contract dispatches money to the
payout address of beneficiary
7

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Blockchain & Insurance

  • 1. Blockchain & Insurance 29 Aug 2016 Ankur Nandwani wechat: ankur2tenn twitter: ankcraz 1
  • 2. Blockchain ● Blockchain is a distributed, public ledger that contains the history of every transaction on a network ● Underlying technology powering digital currencies like Bitcoin, and Ethereum 2
  • 3. What is Ethereum? ● Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference* ● Turing-complete scripting language makes it easier for developers to build complex apps ● Ability for more than just value transfer - moving beyond currency ● Allows for computation to be executed in the blockchain *https://www.ethereum.org/ 3
  • 4. Smart contracts ● Smart contracts are contracts between parties that are codified on blockchain ● Contracts are automatically executed when a condition is met 4 Traditional contract Smart contract https://bitsonblocks.net/2016/02/01/a-gentle-introduction-to-smart-contracts/
  • 5. Ethereum smart contracts ● Examples of Ethereum smart contracts ○ Prediction markets: Augur, allows you to forecast events and be rewarded for predicting them correctly ○ P2P: WeKeep (Insurance) ○ Identity management: uPort ○ Investment: WeiFund 5
  • 6. Insurance smart contracts ● Insurance agreements can be codified into Ethereum Smart Contract ● Process ○ Insured sends premium payments to smart contract ○ Smart contract monitors trusted data sources for qualifying events ○ Funds are released automatically in the case of a qualifying event ● Advantages ○ Lowers operational costs ○ Reduces fraud 6
  • 7. Insurance smart contract examples ● Auto insurance ○ Smart contract periodically checks police reports, DMV records, telemetry and app data ○ If there is a qualifying event, smart contract can change rates, issue warning, or pay out claim ● Life insurance ○ Insured person specifies a beneficiary with smart contract ○ Smart contract periodically checks city and hospital records for medical events and life/death records ○ If there is a qualifying event, smart contract dispatches money to the payout address of beneficiary 7