The insurance industry is all about mitigating and minimising disruption to the outside world. Technology-led innovation in this space is nothing new - but the same question persists. How can we make all our systems work together efficiently?

In the next five years, we’ll likely see smart contracts being used to automate multi-party insurance policies with short and long-term risks.

But smart contracts need an overhaul too (yes, already). You see, typical blockchain and distributed ledger technologies make it really hard for financial and legal stakeholders to understand and deploy smart contracts. Because they’re written as programming code, they’re really no better than the systems you already have, and they don’t offer much support in the way of analytics and business reporting either.

Enter SPARKL Clear Box® - the simple, declarative modelling language which couples with the SPARKL Sequencing Engine to provide a comprehensive solution for the design, execution and enforcement of smart contracts.

What SPARKL Clear Box looks like

Designed to work with in-house and distributed enterprise systems, it leverages typical distributed ledger technologies to log every interaction between your systems, generating a tamper-proof audit trail. SPARKL allows instant unit and transaction testing, providing the easy-to-use SPARKL Developer Console, enabling parties to use their favourite technology stacks for analytics and reporting.

Compliance teams can rapidly write and deploy smart contracts with complete transparency and security to meet the needs of both customers and regulatory bodies.

Premium & claims processing is one such example of a reinsurance process where the use of SPARKL smart contracts would bring significant benefit to the workflow, as below:

SPARKL tech

SPARKL ensures:

  • Underlying policies fit within the program
  • Losses fall within the defined policy terms
  • Processes are applied in the correct order
  • Claims are applied individually or grouped appropriately
  • Various policy limits are properly applied
  • Any premium & claims payments required are calculated, processed and communicated
  • Any remaining reserves are calculated correctly and set up in accounting systems
  • The overall relationship is monitored and any resultant ledger entries are calculated and applied correctly

A solution that accommodates this entire process needs devops, integration, reporting, audit and analytical tools - all of which SPARKL provides through Clear Box and the Sequencing Engine.

We’re excited to be heading to Insurtech Rising 2016, which showcases the best of innovative insurtech at the Crystal in London from the 14-16th November. Drop us a line at talk@sparkl.com if you’re heading this way too - we’d love to show you what we’re working on.

Contact us to request our Proof of Value detailing the insurance use case and demo.

Image via Innovation Labs.