Zircon Tech to demo Usage-Based Insurance on Hyperledger
A pilot application for the Latin American market will be introduced in Consensus 2017 in New York, combining telematics and blockchain technologies for the connected cars.
By 2020, nearly 100 million vehicles globally will be insured with telematics policies. Auto insurance companies competing without telematics offerings will be hurt by negative customer selection and growing imbalances in their portfolio. The paradigm of insurance will evolve from cure to care. While UBI (Usage-Based Insurance) success has initially relied on attractive, end-to-end value propositions, the new differentiator will be the ability to effectively predict actual driving risks using “Big Data analytics”. Insurers will increasingly seize the loss reduction potential of telematics by connecting it tightly with their claims management systems.
Telematics extension to new insurance lines -Home, Health and Life -will push smartphones to the center of cross-line strategies.
Telematics-based insurance focus more on seeing how, when, where and how much you are driving instead of asking for your age, gender, address and claims history when calculating your premium. Thus insurance telematics is the use of telematics by motor insurers with an objective to adjust the premium to the actual risk.
Zircon Tech is working on a solution to be piloted by an insurance company in Latin America at the end of 2017. This solution will allow the insurance company to implement a customized UBI program without involving multiple providers. It includes device provision and/or applications for data collection, data storage and processing, and applications (web and mobile) for data entering and visualization. Our algorithms will provide a scoring system adapted to our customer needs and reality. It will also include, in line with state of the art technologies, a Blockchain development to ensure transparency and security when managing end customer information and multiple stakeholders.
The solution is being built on top of Hyperledger Fabric 1.0, where all the information reported by the devices are secure stored on the Blockchain and processed by smart contracts to query and calculate trip based scoring between other functionalities. New developments are being tested with Hyperledger Fabric Composer, a version to be supported in the near future.
The integration with in-car connectivity is made through one of our technology partners, which provides all the telematics solution. This is combined with a mobile application that can be used alternatively for those users that opted to not use in-car devices.
Zircon Tech is working with the recognized European company Ptolemus, who is helping to define an appropriate driving scoring model for the new UBI markets in Latin America. Ptolemus is bringing all its experience in more advanced UBI markets like United States and Europe.
As a blockchain pioneer in Latin America, ZirconTech is always looking at the latest developments in Hyperledger technology in order to continue being a leading software application company. The development of blockchain based internet of things technologies is a key element in the development roadmap of ZirconTech products and services.
Incorporated in Montevideo (Uruguay) in 2016, Zircon Tech has been funded by MBZ Ventures, Infuy and other private investors, and received the support of the Uruguayan National Agency for Research and Innovation. Zircon Tech will benefit from MBZ Ventures regional presence in Latin America, and will work the UBI solutions in markets like Argentina, Chile, Peru, Colombia and Mexico.