A blockchain for $30 billion marine insurance is currently in use. Shipping has always been in the business of taking risks. Furthermore, there are four types of risks that require marine insurance. Hull and machinery of the vessel itself. The container boxes on the ship. The cargo that is inside the container. In addition all the liabilities that you can incur as shipowner. These include pollution, damage to cargo as well as injuries to the crew. Insurwave is a blockchain platform which supports marine hull insurance. Businesses across the world are able to use the platform to manage risk across their organisation.
The system that has been used until now, tied up too many resources for the customers of marine insurance. It took up 75% of their time on insurance contract administration and 25% on risk management. Insurwave is changing this situation.
Insurwave is a joint venture between EY and developer Guardtime. They are using distributed ledger technologies developed by Microsoft Azure infrastructure. The risk for more than 1000 commercial vessels has been managed in the first year.
This is a digital insurance value chain. Participants are connected in a private network to a shared database in real time. Transactions that usually take days can be processed in minutes using computer algorithms. There is no need for third party verification.
The head of risk and insurance for AP Moller-Maersk said that moving to the platform has reduced inefficiencies for the company. They own 350 container vessels worldwide. This technology will support more than 500,000 transactions in the first year.
Ultimately through the use of IoT and smart contracts, policies will be updated automatically to reflect the risks covered. This combination of technologies will thus help improve efficiency in claims assessment and payment.