Slides from my recent talk about Smart Contracts at the SVIA (Silicon Valley Insurance Accelerator) Blockchain Bootcamp (http://sviaccelerator.com/insurtech-bootcamp-block-chain-01/). Professional edited video to come but not available yet. More about blockchain available at www.blockchaing.org and @audsinthecity (Twitter)

1. smart contracts:
how do they work?
audrey chaing
december 2017

2. Table of Contents
• What Is A Smart Contract?
• Insurance Industry Examples

3. Smart Contracts

4. What Is A Smart Contract?
Source: Wikipedia, bitsonblocks.net
a computer protocol intended to facilitate,
verify, or enforce the negotiation or
performance of a contract

5. In the context of blockchain…
Source: bitsonblocks.net
Smart contracts are –
• Pre-written logic (computer code)
• Stored & replicated on distributed storage platform (eg a blockchain)
• Executed by a network of computers (usually same ones running
blockchain)
• Can result in ledger updates (cryptocurrency payments, etc)
= distributed trustworthy STORAGE
= distributed trustworthy CALCULATIONS

6. Traditional vs. Smart Contracts
Source: Attores

8. Basic Ethereum Smart Contract
Source: Solidity Documentation

9. Industry Examples

10. Popular Insurance Use Cases
• Travel/Life : immediate payouts for delays
& cancellations.
• Claims Management : automate the
verification of coverage and streamline
claims settlement to improve operational
efficiency and remove costs.
• Reinsurance Claims : automate
straightforward claims triggered by smart
reinsurance contracts and models.
• Peer-to-Peer Insurance : peer-to-peer
network to establish smart contracts
without the need for an intermediary or
administrator.
Source: KPMG

11. Source: Etherisc
• De-centralized insurance applications.
• Founded in 2016.
• 1st app, Flight Delay: automates insurance payout if
flight is delayed or cancelled.
• Pilot developed for DevCon2. Could use the product at
DevCon3.
• Other demos: Crop Insurance, Social Security Insurance.
• "Most Innovative Blockchain Startup" award announced
at Blockshow Europe 2017.

12. Source: Etherisc, www.blockchaincompetition.ch
Events in InsurTech Blockchain

13. Not Just Startups…
Source: Artificial Lawyer
Insurance cover for flight delays
Smart contract/blockchain
platform for insurance
with focus on global shipping
Special consultancy division for
Smart contracts & blockchain

15. Thank You
Audrey Chaing is a cryptocurrency trader and blockchain
analyst, and runs the news site blockchaing.org.
• Trading Bitcoin since 2013. Member of the Oakland Blockchain
Developers.
• Co-founded 2 companies in food tech and genetics, through which
she participated in Start-Up Chile and Singularity University
Global Solutions Program.
• Over a decade of experience on Wall Street as an investor, trader,
and research analyst at companies like Credit Suisse, Wells Fargo,
and BlackRock.
• Audrey has a degree in Computer Science from MIT with a
concentration in Artificial Intelligence, and earned her MBA at the
Wharton School of the University of Pennsylvania.
@audsinthecity
audrey@blockchaing.org