How Insurtech Initiatives Are Able To Penetrate The Insurance Sector In Asia And Around The Globe

Inmediate’s main purpose as you already know is to penetrate the current insurance industry, reach out to consumers, re/insurers, and distributors. To make policies transparent and trustworthy by using smart contracts, which is powered by the Zilliqa blockchain solution. And while Asia-Pacific’s enterprise blockchain ecosystem for insurance is nascent, budding startups like us and the incumbents are increasing their involvement so that they can elevate their chances of success by learning from other global initiatives.

In Asia-Pacific this year, several initiatives already have a strong foundation — one example is an Indian insurer consortium along with Cognizant announced a policy solution for data sharing, and this startup is called Vesl. Vesl has led a trade credit insurance initiative, and Suncorp and Cognizant have worked on a claims management system.

And as more companies use blockchain technology to address inefficiencies across insurance in Asia-Pacific, they will benefit from having three core aspects in place — the right network or consortium of participants, a good use-case fit for blockchain technology and the correct blockchain platform for that use case.

Have the Right Network

Blockchain technology is a team sport. Just as a phone is only as valuable as the number of other phones to call, the more participants on the blockchain network, the more valuable the network becomes for all industry participants.

Involving diverse organizations from the start ensures that the blockchain network can address the requirements of all participants along the digital insurance value chain. Without an appropriately wide network, initiatives might recreate the digital islands and data silos that exist today or only address part of a market, instead of offering a holistic platform for a wide range of participants.

For example, B3i and RiskBlock are strong insurance networks in the enterprise blockchain space. B3i is one of the largest insurance consortiums, comprising roughly 60 percent of the insurance market globally, with a focus on Europe. Their first prototype was a property catastrophe excess of loss contract focused on handling reinsurance contracts. RiskBlock is a consortium of 30 insurers, brokerages and reinsurers serving customers in the U.S. It is operated by The Institutes, a firm that provides education for the risk-management and property and casualty (P&C) insurance industry. RiskBlock-led initiatives cover areas such as proof of insurance, subrogation, data sharing and risk registries, and parametric insurance. The breadth of participants in each network means that these efforts can be implemented industry-wide.

The Insurwave platform is another good example of a strong network for its particular use case, given that it operates across an interconnected network of brokers, clients, insurers, reinsurers, and other third parties. The platform will capture information about shipments, risks, and liability, and aim to transform how easily and flexibly these companies manage risks and interact with each other.

It is worth noting that an initiative involving many participants must find the right operating model. Without an effective governance structure in place within the consortium, traditional competitors might not be incentivized to cooperate, or a software vendor may not have the flexibility to execute and drive the initiative forward. Fortunately, there have been many successful consortia to use as models for approaches.

Address a Genuine Business Problem

Initiatives must have an inherent business or technical reason for using blockchain technology that aligns with the technology’s strengths. Generally, good use cases aim to streamline cross-firm interactions. Currently, the way firms interact and collaborate with their counterparties in the insurance market introduces several common frictional costs. Minimizing these can reduce expense ratios for all parties.

In the Italian P&C market, for instance, a consortium of participants recognized the difficulty of submitting rates and coming to an agreement within commercial property insurance.

The group decided on a blockchain-based marketplace because centrally operated databases give single party access to all the data. The central-database approach is especially problematic for brokers, who directly handle client information. Decentralization of the process through blockchain technology has an inherent business advantage in stronger data privacy for counterparties.

Similar use cases might occur where a centralized entity may be rent-seeking, form innovation-killing monopolies, or operate less efficiently than a decentralized architecture.

At the end of the day, if the use-case choice is not well-suited for blockchain technology, the decision-makers within participating firms will not extend the necessary resources to put it into production.

Choose the Right Platform

Today, public blockchains and attempted enterprise forks of public blockchains struggle to meet the requirements of regulated enterprises. This is because their architecture was originally intended for a different purpose: For example, bitcoin was intended to be censorship-resistant cash and Ethereum was intended to be a globally unstoppable computer.

This intention manifests in the architecture decisions of these platforms, such as the public broadcasting of all information, a lack of a developed identity layer, and limitations with scalability resulting from the existing consensus processes. For a blockchain system to go into production, a blockchain platform must be built from the ground up with the requirements of regulated institutions in mind.


Reforming insurance at an industry level is a difficult, broad and ambitious effort. But the cost of the industry-wide inefficiencies to all firms makes these efforts worth these challenges. Having the right network, use-case choice and blockchain platform are the three foundational indicators of success. As activity in Asia-Pacific develops, initiatives that have these foundations in place are best-positioned for success.



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Introducing Inmediate: a platform on which customers, distributors and insurers using smart contracts connect.