Reducing Value Chain Inefficiencies:
 Insurance Use Cases by Tom Menner Director, Solution Architecture for Asia Pacific

1. CORDADAY BANGKOK 2018
THE FIRST CORDA EVENT IN THAILAND
BLOCKCHAIN FOR ENTERPRISE

2. Reducing Value Chain Inefficiencies:
Insurance Use Cases
Tom Menner
Director, Solution Architecture for Asia Pacific

3. Introduction
R3 is an enterprise software firm backed by a collaborative
alliance of over 200 financial institutions, regulators, trade
associations, professional services firms and technology
companies developing on Corda, our blockchain platform
designed specifically for businesses.
Tom Menner
Director of Solution Architecture for Asia Pacific
tom.menner@r3.com | @tmenner
www.linkedin.com/in/tommenner

4. In the beginning…

5. Ethereum introduces smart contracts
Programmable Asset
Restricted to Bitcoin
Introduction of Smart
Contracts

6. The shared control of validated data

7. A brief history of blockchain technology
Altcoin rush
Coin Protocols and
Tokenization
Attempt to move
Ethereum to the
enterprise
2009
Today
Bitcoin
Release
Hyperledger
Project
2015
Extends the concept in
Bitcoin of decentralized
storage to decentralized
application
R3 Consortium
begins
Corda open
sourced
The
Network

8. Distributed ledgers and blockchain at a glance
Cryptography to ensure identity
authentication for each transaction
Non-repudiation/immutability to preserve
integrity of data and create an audit trail
Smart contracts for the automatic execution
of business logic when certain criteria are
met
Shared ledger so each participant sees the
same view of the same data, updated in real
time, subject to permissioning
Distributed consensus to ensure the state of
the ledger represents the agreed-upon truth
of all stakeholders
Ledgers
Distributed
Ledgers
Blockchains
Crypto-
currencies
Non-blockchains
Industry
ledgers

9. Introducing Corda
Privacy
Nodes should be able to transact and have the
assurance of validity and uniqueness but retain
absolute privacy of the transaction history.
Interoperability and Reuse
Privacy should not come at the expense of
interoperability of Corda nodes. Corda retains this
privacy but allows any node to transact without
creating islands of assets or liquidity issues.
Smart Contracts
Corda provides advanced smart contracts that are
multi-asset and a workflow framework that spans
organizations.
Corda retains these characteristics but solves key challenges of blockchain

10. Where we are now
From projects to applications, members to partners
• Corda 3.2 and Corda Enterprise 3.3 released, 4.0 by EOY
• The Corda Network is nearing general availability
• 50+ CorDapps that are currently in development
• Several Insurance CorDapps already live across the globe
• Over 200 partners connected including technology partners, systems
integrators, consulting firms, and infrastructure providers

11. Blockchain and Insurance

12. Property & Casualty - Challenges
Regulatory
Requirements
Data Acquisition &
analysis
Inefficiencies
Litigation Risk Reactive
Billing
6
5
4
3
2
1
Challenges
Archaic billing systems, complex billing
processes etc. leading to high
reconciliation costs
Extensive reliance on broker/
insured to provide underwriting
data, advise of change in risk
etc. to underwrite
endorsements
Risk of lawsuits due to
ambiguity in loss conditions,
assessment procedures, claim
settlement delays etc.
Stringent and dynamic
regulatory requirements
impacting several areas: non-
renew decisions, claims
assessment paperwork,
changes in filed rates impacting
in-flight policies etc.
Inaccurate, disparate sources of data acquisition
leading to long underwriting cycles (6+ months
for complex products) & inaccurate risk profiling
Inefficiencies and extensive
manual intervention across
transactions – contract
placement, claims etc.

13. Reinsurance - Challenges
Regulatory
Requirements
Data acquisition
Contract Placement
Litigation Risk Claims Settlement
Pay-out Calculations
6
5
4
3
2
1
Challenges
Archaic billing systems & complex billing
processes for certain types of reinsurance
policies (e.g. proportional reinsurance)
leading to high reconciliation costs
Complex claims settlement
procedures based on type of
reinsurance policy ranging from
straightforward claims to
complex claims settlement
procedures (for example risk
attaching)
Risk of lawsuits due to
ambiguity in loss conditions,
assessment procedures, claim
settlement delays etc.
Stringent and dynamic
regulatory requirements
impacting several areas: non-
renew decisions, claims
assessment paperwork,
changes in filed rates impacting
in-flight policies etc.
Disparate sources of data acquisition leading to
long underwriting cycles for complex types of
reinsurance policies
Inefficiencies and extensive
manual intervention across the
contract placement life cycle

14. Life Insurance and Annuities - Challenges
Regulatory
responsibilities
Complex
underwriting
processes
Time consuming
checks
Death Claims
registration
Data reconciliation
Billing
6
5
4
3
2
1
Challenges
Archaic billing systems that lead to
inconsistencies & multiple bills for group life
versus individual life products
Extensive data reconciliation
efforts between insurers and
reinsurers a significant barrier
to CFO cost management
Frustrating, inefficient death
claims registration process with
extensive paperwork and
coordination across multiple
entities
Regulations around timely
payout of Defined Benefit/
Contribution plans and laws like
ERISA if not followed can lead
to extensive regulator imposed
fines
Complex underwriting processes which can
take 6 to 8 weeks with 20% customer drop-out
rate
KYC verification process
estimated to take 2 weeks while
at 95% accuracy

15. Example: CordaInsure
Broker Reinsurer
Policy Request
InsurerProposed Policy
Policy Request
Proposed Policy
Primary Policy Reinsurance Contract
Loss Oracle
Loss Data
Loss Data
Process Description:
1. Broker initiates the policy placement process with the Insurer on the Corda ledger.
2. Insurer reviews the submission request and reaches out to the Treaty Reinsurer.
3. After completing negotiations; the primary policy between the Broker and Insurer is signed on by both parties and placed on the Corda ledger; a
similar process takes place for the Reinsurance contract.
4. In the event of a loss, the Loss Oracle (ex. Property Claims Services) provides loss data to the Insurer and Reinsurer.
5. (Re)insurer initiates the claims payout process.
Bank
Premium
Loss Payment
Premium
Future state policy placement and claims triage on the Corda DLT

16. Examples of current insurance apps on Corda
B3i
InsurWave
ChainThat
Blocksure
RiskBlock Alliance
Indian Insurer
Consortium +
Cognizant
Italian Insurer
Alliance + Capgemini
Vesl
CryptoBLK
Reinsurance network of apps-
natural catastrophe excess of
loss as first use case
Marine hull insurance
Policy placement and
technical accounting for
reinsurance
Policy placement and
technical accounting for
reinsurance
Platform for insurance apps -
notice of loss and parametric
insurance first
Policy data sharing
Regional insurer consortium
building quoting and binding
solution
Trade credit insurance
platform
Motor insurance platform
Project Sibi (Internal)
Worker’s compensation
claims platform
Project Ring of Rosies
(Internal)
Pandemic reinsurance
platform
CordaInsure
(Internal)
Policy placement and claims
triage

17. Blockchain insurance consortiums
• Began with:
Achmea, Aegon, Ageas, Allianz, Generali,
Hannover Re, Liberty Mutual Insurance,
Munich Re, RGA, SCOR, Sompo Japan
Nipponkoa Insurance, Swiss Re, Tokio Marine
Holdings, XL Catlin and Zurich Insurance
Group.
• Since added:
AIA, AIG, Aon, Chubb, Covéa, Everest Re, Gen
Re, Guy Carpenter & Marsh, JLT Re, Leadway
Assurance, LocalTapiola, Mapfre Re,
Navigators, PartnerRe, QBE Re, SAHAM
Assurance, Sava Re, Takaful Emarat, TigerRisk,
Trust Re, UnipolSai and Willis Re
• Began with:
American Agricultural Insurance Company , American Family
Insurance, Chubb, Erie Insurance, Farmers Insurance, The
Hanover Insurance Group, Horace Mann Educators
Corporation, Liberty Mutual Insurance, Marsh, Munich
Reinsurance America, Inc., Nationwide Insurance, Ohio Mutual
Insurance Group, Penn National Insurance, RCM&D,
RenaissanceRe, State Automobile Mutual Insurance Company,
United Educators, and USAA
• Since added:
Acuity Insurance, Amerisure Mutual Insurance Company,
Assurant, BB&T Insurance Holdings, Inc., D. Francis Murphy
Insurance Agency, Inc., EMC Insurance Companies, FHM
Insurance Company, GEICO, State Farm, Travelers, TrueNorth
Companies, and W.R. Berkley

18. Blockchain insurance consortiums
• Developed a blockchain solution in India to
facilitate cross-company data sharing, enabling
insurers to reduce the risk of data breaches, fraud
and money laundering, while delivering superior
experience to customers through improved
process efficiency, better record-keeping, and
accelerated turnaround time
• Members:
Cognizant, SBI Life Insurance, Max Life Insurance,
Canara HSBC OBC Life Insurance, Edelweiss Tokio
Life, IDBI Federal Life Insurance, Birla Sun Life
Insurance, HDFC Life, Kotak Life, Tata AIA Life,
PNB MetLife, IndiaFirst Life Insurance, ICICI
Prudential Life Insurance, Bharti AXA, Aegon Life,
and SUD (Star Union Dai-ichi) Life Insurance
• Initiative to optimize corporate risks
quotation, negotiation and binding
processes using blockchain technology
• Members:
Generali Global Corporate &
Commercial Italy, AIG Italy, Unipolsai,
AON, Willis Towers Watson, Capgemini
Italy
• Insurwave maritime insurance includes
asset registration, settlements, ID
management, interest management
• Members:
EY, Guardtime, Microsoft, Acord, Maersk,
Willis Towers Watson, XL Catlin, MS Amlin

19. Insurance partner pipeline
MVP/
Pilot
Production/
Implementation
POC
Tracking Actively EngagedProspect Onboarded
Partnership Maturity
Path to ProductionCurrently on radar, with
potential to target.
Leads to be qualified
through formal team
process.
Qualification process
complete and partners
onboarded to network.
Supporting early build to
validate design.
Supporting functionality
testing by potential end
users.
Supporting deployment
and go to market.

20. Getting started
Technical Accounting
& Settlement
Proportional reinsurance
premium and claims
settlement on ledger
Near Term (1-3 years)
Focus on projects with a clear path to production that
help in reducing costs and eliminating inefficiencies intra
and inter organizations.
Claims settlement for
complex reinsurance
policies ex. Risk-
attaching / loss-
occurring
Trigger based invoicing
Contract Placement Smart-contract
based elementary
claims triage for
XOL Reinsurance
Fact verification via
Oracles and data
providers for CAT
Loss settlement
Medium Term (3-5 years)
As the ecosystem develops; the focus can shift
to revenue generating opportunities as well as
complex processes that involve regulators;
while building the ecosystem for previous
projects.
Long Term (>5 years)
These use cases will materialize as
supporting technologies gain popularity
and achieve economies of scale to
support business innovation, new
product launches etc.
Smart-contract based
auto-underwriting for
simple reinsurance
policies ex. Reinsurance
treaty
IoT based loss control
Cash on ledger for
instantaneous
settlement
Cross-asset contract
placement and claims
triage ex. Combining
marine cargo and hull
risks
Regulator integration for
Multinational Programs
for tax calculations
IoT based dynamic risk
pricing
Blockchain is a journey, not an event - start today with an eye on the future.

21. Summary
• Blockchain solutions are being developed and tested for a range of Insurance use cases
• Policy administration
• Payouts
• Claims management and verification
• New product and platform development
• Record keeping
• KYC and client onboarding
• Digital cash, tokenized assets, loyalty rewards, etc.
• In many cases consortiums are leading the way with research, including R3 itself
• An easy way to educate and look for compelling use cases is to follow the consortiums
and their projects, and even get involved

22. Next steps
• Consider blockchain projects for insurance networks with multiple counterparties and in the service of
new business models (e.g. loyalty & reward points, digital cash for liquidity, tokenization of assets, etc.)
• R3 is not the only blockchain platform company, but it is certainly the most successful one in Insurance
and is emerging as a de facto standard
• Our head of insurance strategy Ryan Rugg (based in NYC) will be visiting Asia for 2 weeks beginning Oct 17
– we’re happy to schedule a meeting (schedule permitting) or a call.
• Feel free to reach out to local AP contacts for more information:
Carl Wegner, Managing Director, Head of Asia
carl.wegner@r3.com
Tom Menner, Director of Solution Architecture for AP
tom.menner@r3.com
Sharon Yuen, Sales Lead for AP
sharon.yuen@r3.com

23. Partner CorDapp Stage/ Planned Go-Live Use Case
B3i Live 2018 Q4
Focused on building a platform to handle reinsurance contracts on a state of the art distributed
ledger. 1st app slated to go live by end of 2018 covers the core functionality required to enable a
distributed smart contract management system for Property Catastrophic Excess of Loss
contract.
Blocksure Live
Insurance operating system built on Corda by leveraging Acord standards, focused on full life
cycle insurance sales, administration and claims. First live transactions are focused on
Commercial and General (broker) to place all lines of business in general insurance underwritten
by the insurance group Covea Insurance.
InsurWave Live
World’s 1st marine insurance Blockchain platform leveraging Acord standards to support more
than half a million automated ledger transactions & help manage risk for more than 1,000
commercial vehicles in Year 1 by connecting the end-to-end insurance supply chain over Corda.
RiskBlock Live 2018 Q4
Focused on building a platform to handle primary insurance contract placement with the 1st use
case on Proof of Insurance (POI) to provide means to transfer insurance information in real-time
across parties to quickly identify uninsured/underinsured motorists.
ChainThat Live 2018 Q4
Part of ChainThat’s integrated and modular Insurance Blockchain Framework (CT-IBF);
ChainThat’s Insurance Accounting and Settlement solution provides management of insurance
and reinsurance technical and financial accounting & supports ACORD Ruschlikon EBOT data
standards.
Vesl Live
Trade credit insurance platform connecting borrowers, insurers and financiers into a single
specialized marketplace where SMEs can access insurance and financing to facilitate pay per
transaction scheme making it simple and more affordable to purchase trade credit insurance.
Cognizant
Live
(Developing phase 2)
Corda-based solution among the Life Insurance IT Leaders Forum (consortium of 13 life insurers
in India) for sharing of key customer claims data in a self-sovereign model to reduce cost,
fraudulent claims and ensure receiving party has latest customer data.
Capgemini Live
Industry consortium for the 1st Blockchain (Corda) based solution for the corporate insurance
market in Italy to improve customer service in the risk assessment phase, manage and optimize
negotiation and quotation times, for Property risks (with eventual expansion to other LOBs) .
DigitalInsurance

24. CORDADAY BANGKOK 2018
THE FIRST CORDA EVENT IN THAILAND
BLOCKCHAIN FOR ENTERPRISE