The Singapore subsidiary of Japanese insurance firm Mitsui Sumitomo Insurance Group (MSIG) has signed a Memorandum of Understanding with blockchain startup Inmediate to explore new insurance products that leverage blockchain and smart contracts technology.
The partnership will help develop a network that connects insurers, distributors and consumers for insurance on the blockchain, in line with the promise help by Singapore startup Inmediate. As part of the deal, MSIG Insurance will commit operational expertise, systems support and product development guidance to the pilot blockchain project.
“The experimentation on blockchain technology is likely to lend deeper insights on how blockchain can provide better digital experience to our customers and improve the insurance value chain,” said Michael Gourlay, CEO of MSIG Insurance (Singapore) Pte. Ltd. “The partnership with Inmediate will enable us to leverage on each other’s strengths and further expand the possibilities of our digital innovations.”
Inmediate, a venture launched earlier this year by the founders of Insurance Market as a collaboration with Deloitte, FWD, and Zilliqa, is building a collaborative ecosystem for blockchain-based insurance. The ecosystem and associated network intends to bring together customers, (re)insurers and distributors in one place and let them transact smart contract-based insurances.
Insurers on the Inmediate network will design, price and publish smart contract-based insurance products and offer promotions and loyalty programs. Meanwhile, customers will be able to place insurance orders via multiple points of sale either directly with an insurer online or through point of sale connected devices and applications. The platform will also support decentralized applications (DApps).
According to Otbert de Jong, CEO of Insurance Market, blockchain and smart contracts will have a huge impact on the insurance industry. However, there needs to be a common platform “all the disparate initiatives to come together on and a shared infrastructure to develop knowledge, speed, controls and commercial viability.” Inmediate aims to be this platform.
The Inmediate platform is set to launch in the second half of 2018. Consumers will be able to use the platform and customize insurance coverage to their needs. Insurance contract information will be stored onto consumers’ digital wallets for real-time processing. When a predetermined set of insured events will occur, the smart contract will trigger a claims payout to the consumer via the digital wallet.