Swiss Re Ag · SIX:SREN
Swiss Re — Z/Yen Group — International Conference on Contract Simplification 2016
29 slides from Swiss Re's conference presentation, Mar 29, 2016
Slide 1: Blockchain Technology: The Next Big Thing?
International Conference On © Z/Yen Group Contract Simplification 2016 “Zest for Enlightenment” Blockchain Technology: The Next Big Thing? Professor Michael Mainelli @mrmainelli michael_mainelli@zyen.com Z/Yen Group Limited 29 March 2016 Risk Reward Managers 90 Basinghall Street London EC2V 5AY Unit
Slide 2: Z/Yen
© Z/Yen Group Z/Yen 2016 ♦ Special – City of London’s leading commercial think-tank ♦ Services – projects, strategy, expertise on demand, coaching, research, analytics, modern systems ♦ Sectors – technology, finance, voluntary, professional services, outsourcing Independent Publisher Book Awards F
Slide 3: Z/Yen in Finance Research
© Z/Yen Group Z/Yen in Finance Research 2016 ♦ Distributed ledgers (1995-present) ♦ LIBOR and FX surveillance (2007-present) ♦ PropheZy and VizZy – automation & visualisation of compliance monitoring (2002-present) ♦ Prediction markets and bubbles (1998- present) – www.extzy.com ♦ Market intelligenc
Slide 4: The Study Of Money Is The Root Of Much Madness
The Study Of Money Is © Z/Yen Group 2016 The Root Of Much Madness [www.dilbert.com, Thursday, 27 January 2015] www.longfinance.net [http://illusionsetc.blogspot.com/2005/08/moving-mobius-strip.html]
Slide 5: Bit + Coin
© Z/Yen Group Bit + Coin 2016 Spectrum.ieee.org “How a Bitcoin Transaction Works”
Slide 6: Ledgers: Look Beneath The Coins
© Z/Yen Group Ledgers: Look Beneath The Coins 2016 “… the potential impact of the distributed ledger may be much broader than on payment systems alone. The majority of financial assets — such as loans, bonds, stocks and derivatives — now exist only in electronic form, meaning that the financial syst
Slide 7: Potential of Potential
© Z/Yen Group Potential of Potential 2016 Professors Michael Mainelli & Mike Smith Z/Yen Group “In distributed ledger technology, we may be witnessing one of those potential explosions of creative potential that catalyse exceptional levels of innovation.” Matthew Hancock & Ed Vaizey (January 2016)
Slide 8: Sharing Ledgers For Sharing Economies
Sharing Ledgers For Sharing Economies © Z/Yen Group 2016
Slide 9: Possibly Distributively Ledgerable
© Z/Yen Group Possibly Distributively Ledgerable 2016 Area Possible Applications Financial Currency, private and public equities, certificates of deposit, bonds, derivatives, instruments, insurance policies, voting rights associated with financial instruments, commodities, records, models derivative
Slide 10: Why Does A Central Registry Exist?
© Z/Yen Group Why Does A Central Registry Exist? 2016 Financial services are based on ‘mistrust’ & leverage ♦ Validate - Sin of Commission – forgery of a transaction ♦ Safeguard - Sin of Deletion – reversal of a transaction ♦ Preserve - Sin of Omission – censorship of a transaction
Slide 11: What Does A Distributed Ledger Do?
© Z/Yen Group What Does A Distributed Ledger Do? 2016 ♦ Validates – “a trust model for timestamping” ♦ Safeguards – “a set of rules for updating state via blocks” ♦ Preserves – “a shared state” Persistent & Pervasive [Nick Williamson, “What Is A Blockchain?” (12 April 2015) - http://blog.credits.vis
Slide 12: Terms Defined
© Z/Yen Group Terms Defined 2016 ♦ ledger – a record of transactions ♦ distributed – divided among several or many, in multiple locations ♦ mutual – shared in common, or owned by a community ♦ mutual distributed ledger (MDL) - a record of transactions shared in common and stored in multiple location
Slide 13: Buzz or Hype? The New New Thing
© Z/Yen Group Buzz or Hype? The New New Thing 2016 [Ken Tindell mashup - 14 May 2015 https://twitter.com/kentindell/status/598865133247569920]
Slide 14: The Old Old New New Thing…
© Z/Yen Group The Old Old New New Thing… 2016 [www.dilbert.com, Friday, 17 November 1995] [Internet (1976 for me), databases (Oracle, Ingres, DBII, relational/hierarchical/distributed), web (SGML, Gopher), ‘Internal Internets’ (i.e. intranets), social media (SixDegrees)…]
Slide 15: Buzz Or Hype - Old Old Things?
© Z/Yen Group Buzz Or Hype - Old Old Things? 2016 ♦ 1976 – Diffie-Hellman & Merkle ♦ 2013 – Silk Road, FBI, Alderney coin (also RSA) ♦ 2014 – Regulators – Jersey & ♦ 1990 – Mondex, Digicash, Flooz Alderney, Isle of Man, FATF, ECB, ♦ 1993 – Encrypted Open Books State of New York ♦ 1995 – Z/Yen Stacks
Slide 16: Mistrust Costs Coins
© Z/Yen Group Mistrust Costs Coins 2016 Efficient Central Database ‘Woven’ Master Broadcasting Free for Node All Nodes Majority Nodes Supervisor Nodes No Collective Single Trusted Nodes Trusted Third Third Parties Party Paper Ripple Ethereum Bitcoin Inefficient
Slide 17: Logically One, Physically Many
© Z/Yen Group Logically One, Physically Many 2016 ♦ Identity systems – PwC KYC Centre of Excellence ♦ Wholesale insurance ‘deal rooms’ ♦ Retail insurance – motor, home, small business ♦ Credit validation and scoring ♦ Clinical trials ♦ Timestamping – MetroGnomo.com with States of Alderney
Slide 18: InterChainZ & IntereXchainZ
© Z/Yen Group InterChainZ & IntereXchainZ 2016
Slide 19: Identity
Identity © Z/Yen Group 2016 InterChainZ - Identity Validator Use Case __ Identity Validator EW715WorldCheckreport.pdf Add Data to Ledger Import / Export Fu eee Row height + Add New Entity Export to file Row hash pooobefacei449914c49255a5dnde7%ce 1262 1S2eSEZASETZASTCHSCAAaS7St + Add Entity Data eee
Slide 20: InterChainZ Deal Room
© Z/Yen Group InterChainZ Deal Room 2016
Slide 21: Insurance - ACORD Messaging
© Z/Yen Group Insurance - ACORD Messaging 2016
Slide 22: Coverholder & Service Company – Key Interactions
Current Operating Model Coverholder & Service Company – Key Interactions © Z/Yen Group 2016 Client (can be in or out of territory) 1 1 1 Risk query, claims, Policy etc. Local / Placing / Coverholder / Service Producing Broker* Company (TPA for some NB: Relates to Lloyd’s business only. This Business
Slide 23: London Market – Key Interactions
Target Operating Model (TOM) London Market – Key Interactions © Z/Yen Group 2016 Justification for RAG status Policy Holder 1) and 2) Easier access to central services Risk query, 1 3) Placing avoiding paper with single claims, Policy etc.* Optional Channels contract version and no re-keying of Brok
Slide 24: MetroGnomo
© Z/Yen Group MetroGnomo 2016
Slide 25: Insert Bordereaux
Peroid of cover Policy Reason for Host details Property details cancell Premium IPT cancellation ed From To Unique First Surnam Referenc © Z/Yen Group Name e e Address Poscode Address Postcode Date Time Date Time 9.50% 2016 123 Bank 54 Woodhill John Smith VR0001 Street EC2V 5AY Lane W17 RQ No £2.00
Slide 26: Process versus Technology
© Z/Yen Group Process versus Technology 2016 Contract Wholesale Execution Payments Identity Asset Archiving Maintenance Technology Market Change Regulatory Asset Transfer Difficulty Reporting Deal Rooms Shared Data Timestamping Process Change Difficulty
Slide 27: Thoughts?
© Z/Yen Group Thoughts? 2016 ♦ Mutual distributed ledgers help make better ‘contract’ utilities by providing: shared ‘preserved’ data shared ‘safeguarded’ transactions ♦ Mutual distributed ledger technology will displace much messaging and shared data functions … try one out … www.MetroGnomo.com
Slide 28: Thank you!
When Would We Know Our Commerce Is Working? © Z/Yen Group 2016 Thank you! “Get a big picture grip on the details.” Chao Kli Ning
Slide 29: Basic Copyright Notice & Disclaimer
Basic Copyright Notice & Disclaimer ©2016 This presentation is copyright protected. All rights reserved. You may download or print out a hard copy for your private or internal use. You are not permitted to create any modifications or derivatives of this presentation without the prior written permiss
Z/Yen Group — International Conference on Contract Simplification 2016 on 6ix