1. Blockchain, Riskblock, and Bitcoin.
Blockchain technology and how it is impacting how risk management professional do business.

2. What is Blockchain?
Blockchain is a technology that uses cryptography on a distributed database that includes all previous transactions in chronological order on a permanent public ledger.
Bitcoin was the first blockchain created in 2008 by Satoshi Nakmoto to be used as digital cash
Blockchain has expanded from just a cryptocurrency and now has a variety of business uses

4. Blockchain details Additions are permanent
Solves double spending problem
Establishes trust and eliminates a needed centralized authority which:
1) increases security
2) tears down barriers
3) Speeds up transactions
4) improves privacy

5. How does Bitcoin work? Alice “sends” Bob Bitcoin
The transaction is timestamped and publicly put on a ledger with a cryptic hash
Miners verify the transaction by using CPU power to solve for the transaction with a complicated math equation. About every 10 minutes a block is verified.
Miners race to solve for the solution by verifying transactions. The miner that completes the block of transactions is rewarded with bitcoin.
Once the block is solved it is added to the blockchain
Once it is verified Bob “receives” the bitcoin.

10. Riskblock
The Institutes RiskBlock Alliance is an unprecedented, industry-led consortium collaborating to unlock the potential of blockchain across the insurance industry. RiskBlock will accelerate time to market and adoption through real-world applications and impactful blockchain use cases.
The RiskBlock consortium is currently accepting new members. Join forces with The Institutes and other RiskBlock members to realize the potential of blockchain. (TheInstitues.org)
30+ insurance partners have joined Riskblock
Sponsored by The Institutes and LIMRA(Life Insurance and Market Research Association)
Some current Members American Family Insurance, Chubb, Erie, Farmers, The Hanover, Liberty Mutual, Marsh, Munich Re, Nationwide, State Auto, USAA.

11. Possible Uses in Insurance
Use Case
Objectives
Proof of Insurance
Establish electronic safekeeping
Enable automatic information updating
Subrogation
Facilitate netting of payments
Optimize costs and streamline processes
Parametric Insurance
Expand parametric insurance
Automate assessments and payments
First Notice of Loss
Optimize information flow
Facilitate efficient data sharing

12. Current and possible Insurance uses
Could be used in health insurance to verify claims only paid once.
Nationwide Proof of insurance on the blockchain for auto insurance.
Insurance Journal article has B3i which is 15+ reinsurance companies use a property excess of loss reinsurance contract with blockchain
Used in Cargo insurance to verify delivery of products or not.

13. Other Non-insurance uses
Micro transactions (download a movie or a song for pennies)
Advertising
Transfer money internationally without a intermediary or large fee.
Logistics companies can use smart contracts (Ether) to verify shipments were made
Regulatory compliance
Real estate and Titles
Voting

14. Concerns? Regulatory concerns Environmental concerns Over speculation
The unknown?

15. References
The Blockchain: Patrick Schmid, PhD, AVP, The Institues
Bitcoin White Paper, Satoshi Nakamoto
Insurance Journal 1st Reinsurance Product heads to Blockchain
Business Insurance Article about blockchain for WC have-major-role-in-workers-compensation-transactions-says-Paul-M
EY news Insurwave first-blockchain-platform-for-marine-insurance-now-in-commercial-use
Nationwide Blockchain
Blockchain Explorer
Funny Video commercial-what-is-it-and-how-does-it-work/