This site is part of the Informa Connect Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

search
Innovation

A wholesale insurance executive’s guide to smart contracts

Posted by on 30 January 2017
Share this article

An abundance of new technologies and new technology interactions has created the buzz surrounding ‘InsurTech’, the emerging combination of insurance and technology. Smart contracts are an increasingly popular point of discussion as people realise that computer code can be embedded in distributed ledger technology. Yet, smart contracts do not need distributed ledgers and could promote straight-through-processing (STP) in the London wholesale insurance Market with current technology.

This guide aims to give insurance executives an overview of smart contracts that should aid them in discussions about the technology future of the Market. The guide tries to explain the concept, give a taste of the technology and applications, and look to the longer-term risks and rewards.

1. Why Smart Contracts?

Smart contracts can be an effective way of implementing ‘straight-through processing’ (STP) in a complex environment, reducing costs and increasing speed of execution. They can also provide a framework for reducing legal risks. They have the potential to support efficiency and innovation in many areas of wholesale insurance through increased automation and new ways of processing.

2. What Is A Smart Contract?

A smart contract is “the implementation of contract terms as executable computer code”. A simple example of a smart contract is a contract which pays $50,000 on every day in July when the temperature recorded by a given field on the Met Office website is above 33 °C.

Click to download full guide >>

Share this article

Sign up for Insurance email updates

keyboard_arrow_down