commercial insurance and blockchain

London Insurance MarketA market overview and how Distributed Ledger / Blockchain Technology could does fit

Gary NuttallDistlytics LtdMay 2016

Please read the small print…

This presentation reflects my personal views and is not intended to reflect the views of past, current and prospective

employers, clients or other agents

It’s intended as a simplified overview!

AGENDA

What is “Specialist Lines” Insurance ?

How does it work ?

Where will Distributed Ledger / Blockchain work?

General InsuranceConsumer/Small BusinessHome – Buildings & Contents

Property – Motor, high value items, mobiles, electronicsLife, Travel

Accident/Health/Medical

Distribution:Direct

Aggregator

General Insurance (data from ABI 2015 Report)

Specialist Insurance

Specialist Insurance

Specialist Insurance

Specialist Insurance (LMG/BCG London Matters Report, Nov 2014)

Specialist InsuranceKey features:

• Large capital reserves to cater for major claims & catastrophe events

• Exposure/liability often “long-tail”• Complexity reduces ability to commoditise• Emerging risks – uncertain/unknown problems• Requires risk pooling/sharing

Specialist Insurance (LMG/BCG London Matters Report, Nov 2014)

Lloyd’s of London

How does it work ?Lloyd’s

Underwriting

Accounting &

Settlements

ClaimsClient

Broking

How does it work ? Lloyd’sUnderwrit

er

Broker

Underwriter

Claims Mgt

Broker

Underwriter

Underwriter

Underwriter

Broker

How does it work ? Lloyd’sUnderwrit

er

Broker

Underwriter

Claims Mgt

Broker

Underwriter

Underwriter

Underwriter

Broker

It’s already P2P!

Challenges…(1) Paper

But…

Challenges…(2) Tried to modernize before

When can Blockchain be used?A few things to be aware of……

When can Blockchain be used? (from LM TOM consultation)

When can Blockchain be used? (from LM TOM consultation)

How will it work ? Conclusion….

The Market is already aligned with P2P There are many opportunities across the value chain

THANK YOU!Q & A

USEFUL RESOURCESwww.distlytics.com

Gary NuttallEMAIL: GNUTTALL@DISTLYTICS.COMTWITTER: @GPN01LINKEDIN: https://uk.linkedin.com/in/garynuttall