Insurance blockchain solutions provider ChainThat has unveiled what is claimed to be the world’s first technology-driven insurance and reinsurance risk and capital exchange in Bermuda later this year.
ChainThat said the exchange, which is expected to go live with a production trial in July 2019, will enable broker, reinsurance and insurance companies access to the capital markets using blockchain.
It is claimed to be the insurance and reinsurance industry’s first distributed ledger technology (DLT) driven risk and capital exchange, dubbed the Bermuda Insurance Exchange.
The exchange will enable the transfer of risk and capital between direct insureds, brokers, cedants and captive insurers and insurance, reinsurance, industry loss warranties (ILW) and insurance-linked securities (ILS).
The Bermuda Insurance Exchange will be implemented in stages. Initially, it will provide the framework for traditional reinsurance market, including placement, accounting, settlement and claims.
The next stage will include new capital, supporting the same processes for ILS. It will be followed by ChainThat introducing support for securities and warranties and ultimately provide trading of the instruments.
ChainThat CEO David Edwards said: “We are delighted to be unveiling this exchange that will cut frictional costs and allow brokers, reinsurance and insurance companies access to the capital markets using blockchain. This is an opportunity for Bermuda to establish itself as the most advanced insurance market in the world.”
Other regional insurance hubs are also planned which will offer brokers, insurers and reinsurers easy forms of business networks across the globe.
ChainThat business development director Rebecca Oliver said: “The exchange will enable the existing market participant businesses, brokers and risk carriers, to develop and market new competitive products and extend their distribution reach like never before.
“Cost control and innovation are the two big issues that are being discussed in insurance board rooms around the world. By automating the current operational framework, we believe the Bermuda Insurance Exchange provides the insurance and reinsurance market with the opportunity to both maintain margins while reducing pricing to the insured. In turn, this will increase business performance and global competitiveness.”
Last May, the company formed partnership with Send Technology to ease adoption of blockchain technology in the insurance and reinsurance markets.
Send Technology offers integration and data transformation services which make it easier for re/insurers to adopt blockchain and DLT technologies.