Italy is considering starting smart parametric policies with automatic reimbursement based on blockchain, smart contract and distributed technology (DLT). The policies will cover the risks related to bad weather, delayed flights and lost luggage. Catholic University and Reply are developing a solution for the issuance of smart blockchain-based insurance policies.
The project is created within the Insurance Blockchain Sandbox, a controlled-regime environment which enables insurance firms and brokers to test goods, services, processes, business models and DLT-based distribution models in maximum safety and under the concrete supervision of a Scientific Committee made of IVASS, Institute for Insurance Supervision, CeTIF - Catholic University, Reply and the supporters of individual use cases.
In this matter, Aon Reinsurance Solutions is also trying to promote the project, that includes giant insurance firms like Mediolanum Assicurazioni, Cargeas Assicurazioni, Nobis Filo Diretto and Reale Mutua, and other three banking institution - Banca Mediolanum, Banca Popolare di Sondrio and UBI Banca.
Last year, the Insurance Blockchain Sandbox was used for the construction of another successful use case. The initiative was promoted by ANIA, that resulted to the formation of a digital platform dedicated to Alternative Dispute Resolution (ADR), a negotiation service for the resolution of conflicts based on blind auction mechanisms between policyholders and insurance firms in the RC car world.
The main aim is to comprehend how digitization and blockchain technology can really represent an accelerator to the spread of smart policies. By empowering automatic and transparent developments, this revolutionary technology will offer enough benefits like cost reduction and speeding up transaction.
This means that the advantages are uncountable, starting from the optimization of the issuing process and the management of the policies, to the acceleration of the liquidation of the damage to the insured.
In the pilot stage, the policies may be kicked in, beginning in this very month, by a controlled target of clients known by the authorities, banks and distributors.
The project involves the creation of 3 various types of smart travel-related policies, precisely covering the bad weather risk, the delay of air travel and the de-routing of luggage.