Marsh Develops Commercial Blockchain Solution for Proof of Insurance

Marsh Develops Commercial Blockchain Solution for Proof of Insurance

Compiled by Insurance24

HARARE, Marsh announced it is collaborating with IBM, ACORD and its client, ISN, to develop a commercial blockchain solution for proof of insurance.

By using block chain, or distributed ledger technology, Marsh said the certificate of insurance process will be transformed “from complicated and manual to streamlined and transparent, allowing clients to speed
up necessary business functions such as hiring contractors and transferring risk while increasing coverage certainty.”

Blockchain is ideally suited to large networks of partners because it establishes a shared, immutable record of all the transactions that take place within a network and then enables permission parties access to trusted data in real-time, Marsh explained in a statement.

Built on the open source Hyperledger Fabric technology and IBM Blockchain Platform, Marsh is developing the commercial proof of insurance solution in conjunction with IBM, with input from ACORD, and customer feedback from ISN.

Currently being tested, Marsh’s new blockchain network is expected to go into production later this year.

Dallas, Texas-based ISN, a global specialist in contractor and supplier information management, is the first Marsh client to pilot the solution.

“Marsh sees great opportunity in leveraging blockchain technology to better serve our clients by maximizing efficiency and creating new opportunities in the insurance value chain,” said Sastry Durvasula,
chief digital officer and chief data & analytics officer, Marsh. “We believe strategic engagements such as this one with IBM, ACORD, and ISN will help accelerate the adoption of further blockchain applications benefiting our clients across industries.”

“Vastly simplifying the process for providing proof of insurance is a key enabler of business. IBM is committed to connecting emerging blockchain networks to facilitate the next generation economy. This is an ideal example of how blockchain can be used on a much broader scale to drive real business results,” said Sandip Patel, general manager, insurance industry, IBM.

“The insurance industry has been dependent on paper certificates of insurance, manually populated by an insurance agent,” said Brett
Parker, technical insurance lead, ISN. “By digitizing the policy information, we can streamline the process saving our customers time to focus on their core competencies.”

Bill Pieroni, president and CEO of ACORD, added: “This blockchain solution is key to evolving standards, enhancing data leverage, and enabling state-of-the-market technology to better integrate ACORD members and foster innovation. ACORD (Association for Cooperative Operations Research and Development) is the global standards-setting body for the insurance and related financial services industries.

Source: Marsh

What to Expect in Commercial Insurance Pricing for Rest of 2018: WTW
Spring Forecast

Commercial property insurance rate increases are easing off initial spikes following 2017’s record natural catastrophe losses, but commercial insurance buyers still face upward pricing pressure on many
lines of business for the remainder of 2018.

That’s according to Willis Towers Watson’s 2018 Insurance Marketplace Realities — Spring Update report (formerly titled, Marketplace Realities).

Overall, the property/casualty marketplace remains well capitalized, buoyed by the strong appetite of alternative capital providers.

The ability for the industry to recover swiftly following 2017’s record natural cat losses — without widespread hardening or any insurer insolvencies — demonstrates a “new level of resilience,” said Joe Peiser, head of Broking, North America, Willis Towers Watson.

According to the report, most buyers can expect their insurance spend to rise in 2018, although not as dramatically as some expected last quarter. Dynamics within individual lines of business are nuanced,
with many lines experiencing a mix of price increases and price decreases.

The spring report’s highlights include:

Property: Buyers may experience rising prices in response to the 2017 cat losses; however, predicted rate increases have moderated since Willis Towers Watson published its November report, and some buyers
will be able to contain increases to a modest level or even obtain small decreases. For buyers approaching renewals, aggressive marketing may be rewarded, although that could involve displacing an incumbent
insurer. Pricing forecast: non-cat exposed –5% to +5%; cat-exposed +5% to +15%; cat-exposed with losses +15% to +20%.

Casualty: While many thought that the property catastrophes would also have an effect in the casualty market, to date WTW says it has not seen a widespread increase in casualty rates, although certain lines
of business remain challenging. Buyers will experience incremental upward pressure on general liability, umbrella and excess liability lines. WTW’s current forecast reflects a slight uptick from the price
prediction it offered last fall. Pricing forecast: flat to +4%. Sponsored by Insurance Journal

Auto Liability: Ongoing market challenges exist in this space, and two years of steady price increases have not kept pace with loss trends and adverse developments. Rates are expected to rise more steeply, and
some buyers may even see double-digit increases. Pricing forecast: +5% to +9%.

Health Care Professional Liability: The marketplace for the long-term care and senior living facilities sectors is growing more complicated. Rising frequency and severity of claims in these sectors is putting tremendous upward pressure on this line of business. Some carriers have exited the market due to adverse underwriting performance.

Pricing forecast: +5% to +20%.

Cyber: Global ransomware/extortion claims dominated 2017, and resulting costs are estimated to exceed $5 billion, a 15-fold increase in two years. Yet new capacity continues to keep the marketplace largely competitive; renewals for primary and excess cover are averaging single-digit increases. Insurers have tightened pricing and increased self-insured retentions and deductibles for companies that have not addressed vulnerabilities.

Pricing forecast: –3% to +5% for organizations without claims or recent incident. The spring update also points to several lines of business where pricing has changed direction since WTW published its November report.
For directors and officers liability, many buyers will now face
increases of up to 5%. The environmental sector is experiencing its first hard market in over a decade. Buyers could face rate increases as high as 20% for site pollution liability coverage.

“Navigating this dynamic marketplace demands a strategic approach, and buyers facing renewals should focus on creating submissions using distinguishing data and narratives to set themselves apart from their peers,” said Peiser.