ChainThat to launch blockchain-powered Bermuda Insurance Exchange in July
Insurtech company ChainThat is planning to launch a blockchain-powered risk and capital exchange to connect re/insurance companies and brokers to the capital markets.
The Bermuda Insurance Exchange is expected to go live with a production trial in July 2019. It allows 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).
A demonstration of the exchange is to be presented at the Hamilton Princess in Bermuda later today (March 5).
“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,” said David Edwards, CEO of ChainThat. “This is an opportunity for Bermuda to establish itself as the most advanced insurance market in the world.”
The exchange will initially provide the framework for a traditional reinsurance market, including placement, accounting, settlement and claims. The next step will be to introduce new capital supporting the same processes for ILS.
Eventually, ChainThat will introduce the ability to support securities and warranties and ultimately provide trading of these instruments.
“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,” said Rebecca Oliver, business development director, ChainThat.
She added: “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.”
ChainThat plans to introduce the exchange to other insurance hubs across the world.