| Existing Process | New DLT Platform |
|---|---|
| Administration systems are managed separately by each party | Administration systems are shared by all parties |
| Data is at risk of loss or breach because it is exchanged via email and data rooms | Data is highly secure because it is immutably recorded directly in the distributed ledger |
| Auditing historical data is very difficult, if not impossible, depending on the period | Data is easily auditable over the length of time |
| Interacting with multiple systems requires complex processing and is labor-intensive | Flexible connectivity via open APIs allows seamless systems integration |
The table below compares the existing process with the new DLT platform.
Here are some of the highlights
Streamlined Contract Management Through Blockchain Smart Contracts
The DLT platform replaces manual processes with smart contract solutions by creating a blockchain network of all contracting parties and moving all contracts onto the network. The contract terms are embodied in code, enabling rapid contract execution and automatic reconciliation of transactions.
«Single Version of the Truth» for Multiple Parties, Immutable and Traceable Over Time
The new DLT platform, enhanced by contract automation software, enables private and secure peer-to-peer communication and data exchange with all parties maintaining a copy of the ledger. Any change in contracts can be viewed by all parties and traced over any period. Network participants agree on all data, signing digitally and cryptographically, which creates a «single version of the truth» built on perpetual consensus without the need for a centralized authority. The history of a transaction becomes secure, immutable, and entirely transparent over the life of the contract. Of course, the platform complies with all applicable regulations.
A Highly Customizable Platform
By customizing pre-coded templates, smart contract solutions allow users to quickly create contracts tailored to specific terms and business rules, reducing reliance on the technology team.
Benefits
Transformation of Every Stage in the Value Chain
By integrating contract automation software, the new DRT platform can drive every stage of the PRT reinsurance value chain including pricing, claims handling, financial reporting, and collateral, within a single ecosystem, utilizing data dynamically stored on the Blockchain.
Massive Reduction of Operating Costs and Risks
Leveraging smart contract solutions by replacing the multiple systems traditionally involved in reinsurance processing and administration, the DLT platform eliminates duplicate work and the need to continuously synchronize data, resulting in huge cost reductions and reduced risks.
Increased Processing Speed
The new DLT platform allows the client and its counterparties to transact much more quickly than ever before while also cutting costs through contract automation software. It has proven to cut monthly reconciliation from weeks to hours.
Business Growth
Because the client’s counterparties also reap the efficiency gains, cost savings, and other benefits of the new DLT platform, the client has greatly enhanced its competitive position, leading to more business in more territories. The technology has become a revenue generator for the client.
Scalability
By vastly simplifying contract execution and administration, the new DLT platform allows the client to take on more business without the added transaction costs associated with manual processes and outdated technology. Scalability, in turn, leads to more cost savings.
Customer Service Excellence
The use of smart contract solutions enhances transparency and efficiency, enabling the client to provide excellent service to its customers, more efficiently and at lower long-term costs than before, with these benefits flowing to the individual pensioners. Feedback from customers who have piloted the platform has been positive, especially regarding the simplicity and clarity of smart contracts and the ability to audit data over any period.
