Most insurance blockchain solutions focus on narrow use cases. Imagine what’s possible if the core policy administration was on blockchain? What sort of cost advantages would that bring? What new types of policies would be viable that were previously ruled out because of overheads?
Singapore Life Philippines is adopting Galileo Platforms‘ blockchain solution in conjunction with e-wallet provider G-Cash to offer low-cost life insurance in the Philippines. The country is seen as an untapped opportunity because gross written premiums represent less than 1% of per capita GDP. And it’s particularly ripe for selling life insurance given fears over COVID-19.
McKinsey recently found that developing economies now account for more than half of global premium growth.
“Galileo technology is built for digital and for scale, offering easy low-cost solutions. That’s perfect for Singlife and perfect for under-insured markets such as this one,” said Rien Hermans, President & CEO of Singlife Philippines.
One of the key advantages of blockchain is the so-called single source of truth. Instead of spending time and money on reconciliations, distributors, insurers and customers share the same data in real-time.
Another McKinsey report published this month says that insurers “need comprehensive, structural approaches to transform their operating models and cost structures. Only a transformative approach will allow an insurer to survive and thrive in a post-coronavirus world.”
Digital-first insurers have some automation, but using smart contracts to automate processes takes it to another level. “Many insurers are struggling to become digital, constrained by legacy processes and systems,” said Mark Wales, CEO at Galileo Platforms. “Our low-cost high-efficiency technology enables the whole life-cycle of insurance transactions to be completed at scale, without touching human hands.”
The platform isn’t limited to life insurance and can also handle medical and general insurance.
Ledger Insights first spoke to Mark Wales two and a half years ago about Hong Kong-based Galileo’s solution, which leverages Quorum, the permissioned enterprise version of Ethereum. While the company has run various proofs of concept, this is the first full customer deployment.
And the latest announcement is true to the vision that Wales outlined at the time. Which was that Asia represents a massive insurance opportunity. He spoke about a lower cost base enabling life insurance premium levels as low as $20 a year. But he was too pessimistic. SingLife Philippines is offering annual premiums as low as $7.50 and it’s even payable monthly at the equivalent of 62 cents per month.