Business-to-Business Insurance

An American online mail-order retailer is aiming to introduce its business services to the mobility and logistics market. The company brought transport drones to the market to cover its own needs, and for consumers, and quickly finds itself forced — within the applicable regulations — to take out an aviation insurance policy for unmanned aircraft. The first patents have already been registered. For this purpose, the company founds a captive insurance company so it can bear the risk itself.

As the risk is unpredictable and the appropriate state-specific laws do not exist, the company develops an aviation insurance policy for the global market. This can be purchased at the same time as a drone, thanks to collaboration with the leading manufacturers. The models’ serial numbers and policies, as well as the risks covered, are now clearly stored in the blockchain. The company offering this has stipulated certain minimum technical standards for the manufacturer.

All the documents are saved in their own decentralised, private blockchain. Customers create their own community where they can discuss suggestions for models, risks to be insured, feedback on service and support, and their requests as customers. This means that drone-related services can be improved and further developed to suit customer and company alike — the open source approach. Even maintenance intervals and a digital black box are recorded in the blockchain, thereby boosting both safety and transparency. The data is available in real time. Smart contracts ensure that financial losses incurred in a loss event by users or investors are limited.

If, for example, a transport drone causes an accident which leads to multiple people being injured, smart contracts mean that orders for the drone that caused the accident can be frozen, current users of the drone in question can be informed of this via the company’s own dashboard, and stakeholders can be notified of the expected fluctuation in share price. The captive is responsible for regulating and coordinating the dashboard, and the damage.

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