A blockchain-powered risk and capital exchange for the re/insurance industry is set to be introduced in Bermuda later this year by ChainThat.
The specialist blockchain solutions firm says this exchange will allow 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).
“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, Chief Executive Officer of ChainThat.
“This is an opportunity for Bermuda to establish itself as the most advanced insurance market in the world.”
The Bermuda Insurance Exchange is set to be implemented in stages, initially providing the framework for a traditional reinsurance market, including placement, accounting, settlement and claims.
ChainThat says the next stage will be the introduction of new capital, supporting the same processes for ILS.
Following on from that, ChainThat will introduce the ability to support securities and warranties and ultimately provide trading of these instruments.
“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.”
Rebecca Oliver, Business Development Director, ChainThat added, “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.”
The exchange is expected to go live with a production trial in July 2019.
