Blockchain comes to Bermuda
Rein4ce client ChainThat is featured in the ILS blog Artemis discussing blockchain and the Bermuda Insurance Exchange, the industry’s first Distributed Ledger Technology (DLT) driven risk and capital exchange.
ChainThat’s Chief Executive Officer (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.”
The Exchange is to be introduced in several stages, the first establishing the framework for a traditional reinsurance market, including placement, accounting, settlement and also claims. The second phase concerns the introduction of new capital, supporting the same processes for ILS. Finally, the firm will introduce the ability to support securities and warranties, ultimately providing trading of these types of instruments.
A number of opportunities with blockchain for insurance market
Rebecca Oliver, Business Development Director at ChainThat, told Artemis: “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.”
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