Company now building blockchain for the UAE’s insurance market; technology to automate motor subrogation and life insurance settlements
DUBAI: The FinTech Hive Accelerator programme – a first-of-its-kind accelerator in the region established by the Dubai International Financial Centre (DIFC) – has announced that Addenda, a blockchain startup for the insurance sector, has qualified to its 2018 programme.
As a blockchain technology built on Hyperledger Fabric, Addenda enables insurance companies to settle outstanding claims and payments between each other faster, safer and at a fraction of the overhead costs needed today.
The current lifecycle of insurance claims is very complex.
It is a challenge to ensure that all parties involved – from reinsurers to brokers to the claimant – are on the same page, especially as most processes are conducted manually and are not yet digitised.
Without a transparent and automated claim-settling platform, insurers need to spend more on overhead and ensure the expertise of their claims handlers to determine the data integrity of claims.
In addition to high overheads, fraudulent behaviour, and tough competition, insurers and policyholders have to confirm and cross check the integrity of data supplied by third parties who often have conflicting interests.
Addenda aims to be a unique regulator-friendly InsurTech platform, where regulatory standards are complied with and commercially sensitive data is encrypted on the blockchain.
The startup wishes to automate resolving high-volume claims (such as motor and health claims) and guarantee that all entities concerned with a claim are aware of its progress in real time.
Curbing double-claim fraud
The startup has showcased a blockchain prototype where local insurers can track claims related to high net worth items, thereby identifying and preventing double-claim fraud (i.e.: fraudulent behaviour when a policyholder attempts to claim the same item twice from two different insurance companies).
Among other concepts, Addenda is also working on automating motor subrogation and life insurance settlements.
“We believe that blockchain in the 21st century is as important for the insurance industry as Lloyd’s Coffee House was in the 17th century,” said Walid Daniel Dib, the co-founder of Addenda.
Addenda’s prototype was successfully tested in front of a live audience of insurance companies, and the startup is currently undergoing a three-month intensive development programme in partnership with FinTech hive and a group of local insurers, and will be commercially deployed in mid-2019.
Addenda is an early-stage startup built on Hyperledger Fabric and uses distributed ledger technology (DLT) to streamline processes between insurance companies.
Tailored tasks are reported in real-time on the company’s user-friendly interface, and then time-stamped as evidence onto a shared blockchain.
Addenda is based in the UAE and was co-founded by two brothers, Walid Daniel Dib and Karim Davis Dib, with the intention of providing B2B insurance solutions through process automation on the blockchain.