Axa insurance ethereum

Excerpt for new Whitepaper onl… compare. Add proposal for RSC token hold… compare. What does it all mean? It means that today, the chances of Etherisc succeeding just became greater! Its better to have small share of a huge market than big share of a tiny market, right?

We are searching data for your request:

Wait the end of the search in all databases.
Upon completion, a link will appear to access the found materials.

Content:

• AXA turns to smart contracts for flight-delay insurance
• AXA drops Ethereum-based flight insurance platform
• AXA Launches Ethereum Smart Contract Insurance Product for Flight Delays
• AXA goes blockchain with fizzy
• AXA Insurance Allows Bitcoin Premium Payments
• Please wait while your request is being verified...

WATCH RELATED VIDEO: How Will Decentralized Insurance Work? - Interaxis

AXA turns to smart contracts for flight-delay insurance

Following the call for strengthening the third pillar of knowledge in entrepreneurship as well as work-applied management contexts constituted by pragmatic design principles, we present a case study on an insurtech for insurance firms specialized in smart contract insurance solutions such as flight delay or ski resort insurance.

This not only serves as a pointer for how insurances may master their digital transformation while remaining competitive.

But moreover, on the meta level, we find that the adoption of entrepreneurial design principles by the students, whose experiential project represents our case study, does not necessarily require continuous support or foundational knowledge to be delivered beforehand.

However, for a deeper or more holistic assessment of the case sketched in their project, it makes sense to introduce them to newer developments such as the simple, practical framework of the Entrepreneur's Question Index.

Hoffmann, C. Published in Journal of Work-Applied Management. Published by Emerald Publishing Limited. Anyone may reproduce, distribute, translate and create derivative works of this article for both commercial and non-commercial purposes , subject to full attribution to the original publication and authors.

A field that has since long blurred the boundaries between work-based and academic learning is entrepreneurship. The current focus of journal publications in the field of entrepreneurship or management, more broadly speaking, is either on established theory with descriptive, explanatory and predictive power testing the business practice e.

Berglund et al. To go beyond the commonplace of bridging the rigor-relevance gap by simply encouraging closer collaboration and more intimate involvement of practitioners in the research process e. Shapiro et al. Even though the call for prescriptive procedural knowledge and a threefold epistemological focus, respectively, has been made, the interplay between theory, design and practice remains underdetermined.

The goal of this paper is to explore the bidirectional relationship between practice and design further by putting the implementation of specific design principles for the attainment of desired outputs in specific contexts in the spotlight.

Their project demonstrates a novel approach to using experiential, namely project-based learning to bridge the gap between settings in entrepreneurship theory and practice. In the following, we present one outstanding student project as a case study in the realm of employing Ethereum-based smart contracts for insurance companies Section 2. In Section 3 , the business problem is restated as well as how blockchain can help address it.

This is followed by an analysis of the current trends in the insurance industry and blockchain while also taking a closer look at already existing solutions. The students' business model is sketched in Section 4 where the Business Model Canvas tool Osterwalder, was used to design it. The paper is concluded in Sections 5 and 6 where we, on the one hand, provide their self-assessment of their business model coupled with possible challenges that could occur when putting the proposed innovation into place 5.

This class gives an introduction to the topic and consists of two parts: theory — a misnomer in the binary worldview of theory and practice — including a mixture of scientific content and mainly practical contributions from guest speakers in different industries and lab, involving the design of a concept for a self-chosen blockchain solution.

The theory part takes place during a weekly lecture, the lab part is part of a 2-days block event at a coworking space and fintech community-builder. The students present their developed concepts to a jury of specialists consisting of start-up entrepreneurs, venture capitalists and digitization experts of financial service providers and receive feedback.

Students further have the opportunity to network with start-ups from both the local accelerator and incubation programs as well as the Crypto Valley train and via swissnex San Francisco, swissnex China, The Floor more internationally. Like others before e. We, therefore, chose the ad hoc development approach by first learning more about the business problem in the next Section 3 and then designing a draft in Section 4 , which we concurrently and conclusively evaluated Section 5 and 6.

During the course of that class, we reviewed literature from various sources such as academic papers, industry leader reports and other publications see Section 8 to construct a landscape of current digitalization trends in the insurance industry in general and specifically with regard to blockchain technology applications see Section 3.

We researched the most pressing technical issues that need to be addressed to make sure our solutions could be applied in practice. We interviewed blockchain experts at Trust Square in Zurich and insurances directly to validate our approach. When formulating ideas, we focused on solutions that would leverage the existing financial institutions and structures, enhanced by blockchain technology, to provide more value to their clients.

Next, different ideas were researched and tested in student groups who prepared a preliminary business plan for each one, finally narrowing down the number of solutions to just the one we pursue in this paper.

We then conducted a market analysis and attempted to position our lending solution for maximum market penetration, the results of which are presented in the following. Together with the students the business problem was analyzed as follows: The insurance market today is characterized by intense competition and price-sensitive customers. Insurance companies therefore experience an increased price pressure and must try to prevail themselves in the market.

In addition, the insurances are at risk of not being able to adapt quickly enough to digital change, making room for new market entries by tech and insurtech companies that offer customer-oriented products and well-designed user interfaces. In order to be profitable in the future, insurance companies therefore search for new revenue sources and ways to be more cost-effective.

In the current state, especially claims processing in the insurance industry, is a resource-intensive task that leads to high costs for the insurances Sehgal, Besides extensive regulations and a long-term low interest rate environment, the insurance industry faces various challenges. In this hypercompetition, insurance companies have to gain short-term competitive advantages in order to maintain supremacy in the long term. These competitive advantages can be achieved in the following areas: price, quality, speed and innovation as well as by setting up entry barriers Fritz, The adoption of blockchain technology could become a possible solution to address these challenges that insurance companies face today.

Blockchain technology is among the most trending technologies Gartner, and argued to disrupt various intermediary services Tapscott and Tapscott, In its generic form, blockchain technology refers to a fully distributed system for cryptographically capturing and storing a consistent, immutable, linear event log of transactions between networked actors Risius and Spohrer, This is functionally similar to a distributed ledger that is consensually kept, updated and validated by the parties involved in all the transactions within a network.

In such a network, blockchain technology enforces transparency and guarantees eventual, system-wide consensus on the validity of an entire history of transactions Risius and Spohrer, [1]. Particularly, the application of smart contracts, generally a transaction protocol which automatically executes actions according to the terms of a contract, may give the insurances a valuable competitive advantage by enabling automation which can lead to time and cost savings in administrational tasks.

Smart contracts can be implemented on the Ethereum blockchain and offer new possibilities to create innovative products for customers Cohn et al. The automatization of the contracts could improve the overall efficiency in the industry. Even if transaction costs cannot be eliminated completely with blockchain technology, the potential cost savings become visible when looking at conducted studies.

The result of one study found that for property and casualty insurance, management and contract administration were the largest driver of cost variance Mussenbrock, These cost savings could be passed on to the price-sensitive customer in the form of lower-premium policies and offer a competitive advantage for the respective insurance company. Another desirable competitive advantage is quality. According to a recent study by Bain and Company Kinder et al. For normal insurance products, claims adjusters are required to assess a claim and its validity.

If the parties disagree on the interpretation of the terms, the information asymmetry usually leads to the fact that the customer is in a weaker negotiation position than the insurance company Cohn et al.

In such a case, the insurance product neither promotes simplicity nor quality for the customer. This is where a main advantage of the blockchain technology becomes visible. Even if not all insurance products are suitable for a blockchain application, those that are, promote the values of simplicity and quality.

The customer precisely knows the circumstances in which the blockchain-based insurance product yields its payout since the circumstances for a payout are already defined in a tamper-proof code.

The payout is being triggered automatically based on a trusted external data source delivered by an Oracle see Appendix 1. Therefore, the insurance company will hold its value proposition to its customer in any case.

This solves the problem of trust issues and information asymmetry. In addition, an insurance product for which the customer has no need of filing a report to receive compensation further amplifies the simplicity of the product.

Finally, the offering of blockchain-based insurance products does not only have great marketing potential for the insurance company but also sets up new entry barriers. This is due to the fact that the creation of such insurance products requires new know-how, the right personnel, financial resources and the technological architecture. The future insurance market will be characterized by a high level of innovation and by further intensified competition Wiener and Theis, The high saturation of the Swiss insurance market makes further growth difficult for existing market participants.

It will be necessary to make use of disruptive technologies such as digitalization, big data science or blockchain that could expand the value creation of the insurance companies. Furthermore, the use of these disruptive technologies could sustainably improve the efficiency of internal processes, thereby significantly reducing operating costs Contri and Galaski, Experts believe that in the future cooperation with new tech companies as well as with competitors will become increasingly important in favor of ecosystems and clusters Gackstatter et al.

This development could lead to shifts in the market positioning of individual insurance companies and to an increase in new market entries and exits. In the future, it is well possible that traditional insurance companies will more often take the role of pure risk carriers when cooperating with technology companies. When focusing on customers, the insurance market will develop positively for them. Experts assume that there will continue to be a high diversity of providers and a wide range of insurance products Wiener and Theis, In terms of blockchain, particularly, the hype is over and companies are done with experimenting Dalton et al.

Fizzy is an insurance product by AXA that insures flight delays on the Ethereum blockchain and was launched in All steps from claims assessment to payment are processed fully automated through smart contracts. The product therefore takes advantage of the benefits that smart contract insurances offer and which is covered in Appendix 1 Hill and Knight, The basic idea of Fizzy is fairly simple [2]. The customer can enter his flight information online and select the desired damage coverage.

The system then shows the premium of the chosen insurance, which can be paid directly by credit card. After the successful payment of the customer, the new insurance policy is created and written on the blockchain with the help of the smart contract.

The smart contract then obtains flight data or flight delay data from publicly available databases via an oracle. The time of arrival is also processed onto the blockchain, and if the flight is delayed by more than 2 h, a payment is automatically made to the customer Temperli, After two years, Fizzy was closed down by Axa since the platform struggled to reach commercial targets making it an unprofitable business for the company Hill and Knight, Etherisc aims to build a free, open-source, open-access platform for decentralized insurance.

Their goal is that independent developers can create and offer their own smart contract—based insurance products on this platform. Etherisc wishes to tokenize the risk pool of these insurances and offer them as financial investment to the public. With their approach everyone could take the role of an insurance or reinsurance company. Overall, Etherisc could make the purchase and sale of an insurance more efficient smart contracts , enable lower operational costs lower personnel and management costs , provide greater transparency into the industry blockchain technology and democratize the access to reinsurance investments tokenization of risk pool.

As illustrated by those two examples, there are already different approaches in the direction of smart contract applications for insurances. The presented solutions are on opposite ends of a spectrum though — Etherisc attempts to totally disrupt the insurance market by basically cutting out insurance companies and by working fully decentralized.

On the other hand, Fizzy was developed by the insurance company Axa in-house, and the related smart contracts are not available for anyone else but Axa. The business approach of Etherisc that enables everyone to build an insurance upon their platform involves certain issues. We believe that it will be difficult for Etherisc to establish a customer base in an environment where insurance customers still distrust blockchain to some extent , especially if we consider that an insurance needs to be trustworthy.

Without trust, people would never buy an insurance product Millen and Wright, Secondly, an insurance company usually has a specific customer group which allows a better risk management. For example, a flight delay insurance could be offered only for flights starting in Zurich which leads to a risk reduction for a parametric insurance contract.

AXA drops Ethereum-based flight insurance platform

Germany's insurance industry isn't known as an early adopter of new technologies. Manual data entry and studious double-checking leaves room for human error and incurs substantial labor and time costs. But risk-averse insurers are betting on blockchain to save money and increase accuracy. Blockchain is a distributed database technology that's the basis for cryptocurrencies such as Bitcoin. Each new block of data must be confirmed by a majority of computers in the network before it is added to the chain. The current blockchain boom is focused on applications beyond cryptocurrencies, using so-called smart contracts.

AXA Launches Ethereum Smart Contract Insurance Product for Flight Delays

If you are not familiar with these principles, here are some quick tips. To search specifically for more than one word, put the search term in quotation marks. This will limit your search to that combination of words. Matthew Lerner. The sale of digital artwork represented by non-fungible tokens — essentially a point on a digital ledger or blockchain that confirms ownership of an original — is gaining traction in the art world, attracting the attention of regulators and posing unique risk management questions for auction houses, dealers and others involved in the transactions. The sale heightened the profile of the emerging art format. Other NFT art includes videos and recordings. The assets are often bought and sold using the cryptocurrency ether on the Ethereum blockchain. Uncertainties concerning the commercial exposures created by such digital art sales are rapidly becoming the subject of discussions in the insurance industry.

AXA goes blockchain with fizzy

Following the call for strengthening the third pillar of knowledge in entrepreneurship as well as work-applied management contexts constituted by pragmatic design principles, we present a case study on an insurtech for insurance firms specialized in smart contract insurance solutions such as flight delay or ski resort insurance. This not only serves as a pointer for how insurances may master their digital transformation while remaining competitive. But moreover, on the meta level, we find that the adoption of entrepreneurial design principles by the students, whose experiential project represents our case study, does not necessarily require continuous support or foundational knowledge to be delivered beforehand. However, for a deeper or more holistic assessment of the case sketched in their project, it makes sense to introduce them to newer developments such as the simple, practical framework of the Entrepreneur's Question Index.

AXA Insurance Allows Bitcoin Premium Payments

When you buy flight delay insurance on the fizzy platform, we record the purchase in a tamperproof network, the Ethereum blockchain, making the insurance contract equally tamperproof. This smart contract is connected to global air traffic databases, so as soon as a delay of more than two hours is observed, compensation is triggered automatically. In this way, AXA has delegated the compensation decision to an independent network, strengthening the trust that customers can have in AXA. What fizzy offers is parametric insurance because it uses a parameter in this case, flight statistics to trigger the performance of a contract. The coverage is completely transparent: you know in advance how much you will be reimbursed if your flight is delayed. Using blockchain technology enables us to guarantee the integrity of the policies that are recorded in it.

Please wait while your request is being verified...

Blockchain technology is on everyone's lips. But what makes blockchain so interesting for insurance companies? How does AXA Switzerland use blockchain — and how will the technology change the insurance industry? In the banking sector, blockchain technology has already made an entry. In the future, it will also impact the insurance industry. Insurance companies work with many different players and their value chain is long. Since insurers operate in increasingly complex business ecosystems, the companies concerned must find an efficient way to manage all of these relationships. The aim is to provide a seamless customer experience.

The increased popularity of cryptocurrency has meant that more firms are open to accepting it as a form of payment. Tesla also announced recently that it would accept bitcoin as a form of payment and it seems there is no stopping the crypto train. Now, AXA, an insurance giant, appears to have joined the bandwagon as it was announced on April 15, , that its Swiss arm would begin accepting bitcoin as a form of payment.

AXA Switzerland, one of the largest insurance companies in Europe, announced today that it will accept Bitcoin for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time. In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering — though this is far more limited today than it has been in the past. The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures.

Numerous service providers are building applications and services on top of Ethereum. Some of them have been successful, whereas others are canning projects for a variety of reasons. AXA, a respected banking and insurance service provider, was one of the many firms building on Ethereum. Its project, known as fizzy, was designed to provide automatic flight delay and cancellation insurance. Despite spending two years of research and development on this project, it has now come to an abrupt end.

And we have all witnessed the drama of natural catastrophe on the news. The camera covers the victims, some considering themselves lucky, others overcome by the emotion of losing their hard-earned belongings or loved ones — all of them in wait for the complications that will come, not least the financial ones. This is where the insurance company comes in. And one of the major stakes in the service-client relationship, too.