Blockchain Insurance Solution For Crisis Situations Planned By Beazley, Bitfury And Othersbr>
Specialist insurer Beazley has teamed with Bitfury Group, Emercoin and US-based insurance broker Risk Cooperative to create a blockchain registry that will manage insurance for crisis situations, such as mass shootings.
Beazley is the parent company of specialist insurance businesses with operations in Europe, the US, Canada, Latin America, Asia, and Australia. It manages six Lloyd’s syndicates and, in 2017, underwrote gross premiums worldwide of $2,344 million. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Risk Cooperative, a coverholder at Lloyd’s, is a specialized strategy, risk, and insurance advisory firm licensed to originate, place, and service innovative risk-transfer and insurance solutions in all 50 US states. It operates across a wide range of industries, helping them gain access to global markets and innovate.
The blockchain registry will enable policyholders and insurers to record and share real-time information about threats and claims through one source, thereby expediting the response to mass casualties. The registry will also eliminate time-consuming audits by underwriters because transactions will be recorded in one place.
Risk Cooperative Chief Executive Officer Dante Disparte said violent events that spur mass casualties, such as an October 1 mass shooting in Las Vegas that killed 58 people at a country music festival and injured hundreds more, can involve numerous insurance policy holders and thousands of claims.
“Many companies still manually record on spreadsheets their annual policies and coverage limits, a practice that can heighten the risk of human error,” said Disparte. “Policy exclusions or having too little coverage can leave communities and victims unable to cover expenses. But those gaps are easier to spot through a permanent blockchain ledger.”
The companies are also planning to develop so-called “smart” policies for violent acts, to be permanently stored in the registry. These smart policies will be automatically triggered in the event of a mass casualty, removing claims paperwork for policyholders and reducing settlement process. Service providers, such as security experts and counselors, would be automatically dispatched when an event is under way.