The insurance industry alliance will release the Codex 1 block chain prototype, the broker’s rice bowl may not be guaranteed

nnThe news of the insurance industry has recently been particularly concerned about the insurance industry chain chain alliance B3i announced some details about its smart contract prototype, this prototype may make some reinsurance business process automation, so that the broker’s work Become redundant. In general, if the prototype succeeds, it will greatly improve the efficiency of the reinsurance company while reducing its costs so that consumers can enjoy their services at a reasonable price.n
nnTranslated by: Inan
nThe insurance industry chain chain B3i has released the latest details of its block chain smart contract prototype, and its progress may squeeze insurance brokers out of the industry.n
nThe prototype is known as “Codex 1”, which aims to automate many of the processes currently covered by brokers’ disaster reinsurance and ultimately improve risk trading more broadly.n
nTo achieve this, the prototype will allow insurers to find reinsurers, and reinsurers that serve them will be able to access the same encrypted, distributed distribution.n
nWhile the parties involved in the reinsurance workflow remain unchanged in Codex 1, the prototype shows that some of the services of the insurance broker will become irrelevant.n
nIn a dialogue with CoinDesk, Paul Meeusen, director of global business solutions at Swiss Re, said it would have a huge impact if the block chain prototype could be used on a large scale.n
nMeeusen is also a founding member of B3i, he said:n
nn”The broker is involved in the administrative work is to collect all the documents, and then ordered to pass it to the next participant, which of course will become redundant.n
nnThe members of the alliance include the Dutch Global Insurance Group, the Allianz Insurance Group of Germany, the Munich Reinsurance Company, the Swiss Re, the Li Bao Mutual Insurance Group and the loss JAPAN Japan Xingya, from the beginning of this year Codex 1 work on the block chain Several potential use cases were evaluated.n
nThe alliance finally decided to convert the “Property Cat XL” reinsurance workflow into an automated contract, especially because the business would be widely adopted in a similar context around the world.n
nHe said:n
nn”Wind whistling or ground shaking means that the disaster can happen, and in simple terms, the nature of the disaster is the same across the globe.”n
ncut costs n
nAt the beginning of the alliance, Meeusen argued that block-chain technology could allow reinsurers to compete to deliver better products, not just a better platform.n
nFor example, in a typical “property catastrophe” reinsurance contract, brokers receive quotes from multiple reinsurers and help organize the most favorable risk assessment and pricing mix. Then they will promote communication between the parties while maintaining the confidentiality of the final terms of the transaction.n
nHowever, with Codex 1, most of the work of the broker’s role will be replaced by a licensed chain, enabling automated billing and claims processing, while ensuring that the parties do not know each other’s terms.n
nMeeusen hopes that the company will eventually be able to focus on providing more accurate risk assessments and more favorable prices.n
nHe said:n
nn”We expect that once reinsurers are able to improve their efficiency, they will soon be able to offer more attractive prices.”n
nnAccording to Meeusen, if brokers are not cleared of the process, they should “charge less commission because their services will become more efficient.”n
nExpand use casesn
nAccording to Meeusen, although the prototype focuses on property disasters, the alliance is ready to carry out a number of other projects on this basis.n
nThe next step is to expand the scope of services, the casualty insurance (such as motor vehicle accidents and workers compensation) into them, Meeusen said that this only need to copy the current smart contract – paste.n
nB3i also wants to expand its chain-chain work, including “proportional contracts” that rely on proportional terms and improve the design of securities and bonds related to insurance.n
nThe prototype is scheduled for the first live demonstration at the Monte Carlo RVS conference in September, and if it succeeds, it may eventually create tokens, making trading risks as simple as trading digital currencies (such as Bitcoin and Taitong).n
nMeeusen concludes:n
nn”This is the overall plan, but we have to go before learning to run every step.”n

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