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28 Oct

Transforming captive insurance with uplink DLT and smart contracts

Learn more from team members, Alan and Somil, at the European Captive Conference in Luxembourg, 14-15 November

On November 14-15, this year’s European Captive Forum in Luxembourg will host global risk and insurance professionals who are positively impacting corporate captive success. Among the attendees are Adjoint’s COO, Somil Goyal, and Switzerland General Manager, Alan Cabello. Adjoint will showcase the great value it brings to the captive and broader insurance market by leveraging our distributed ledger technology, Uplink, and smart contracts.


Captive Insurance Today

Captive insurance programs are considered among the most challenging in the corporate insurance space.. Captive insurance vehicles are created for large enterprises to self-insure across lines of business and countries.


The captive process involves often hundreds of parties that need to be in sync with the most current information. However the current processes often operate on disparate systems, excel spreadsheets, emails and even faxes. This inconsistent generation and distribution of information poses as a management challenge, as well as a huge legal, operating and commercial risk. Another major issue is slow process of booking, binding and settlement of premiums or payment of claims. Payments are generally made in batches, whereby the receiver must unbatch the payments and identify the proper policy or claim to which it belongs. Inevitably errors and delays occur when unbatching payments and claims are left unverified, and enterprises must write off a loss when these errors occur.


How does Adjoint create value in this process?

Through an intuitive user interface we ensure everyone in the process is looking at the most recent data in a way that promotes productivity. Access rights and entitlements are implemented. Usual tasks like FX conversations and template-based invoicing are automated. Underneath this multi-user application lies a powerful and effective distributed ledger to create, track, and manage all components of the captive insurance process.


This digital ledger keeps an auditable, immutable record of transactions across all the involved parties. Think, continuous reconciliation. This helps local offices, captive manager, fronter and program managers to update and share records across themselves, based on their role. The technology ensures that information is held private and only shared accordingly to the role. For example, regulators or auditors can be provided an on-demand access point, but only for the specific information that is required for a particular review. From a cybersecurity standpoint, a distributed ledger and strong cryptographic methods limit the impact of any potential threats, thus making the captive management process far more secure.


Another component are smart contracts , which allow is automating multi-party processes. This helps automate operational tasks in the captive management process in an auditable way. Examples can be FX rate calculations, matching of information, premium calculations, or issuance of invoices.


Now, picture this - your transformed captive insurance practice: fast, efficient and secure.