Insurance-as-a-Service by a Captive

A global branded drinks producer, headquartered in Austria, offers pre-made insurance products for high-risk sports under its brand. These are passed on to the end users in question via selected partner companies. In addition to the platform and insurance services, the company offers its corporate customers training sessions, and assists them with establishing the portfolio within its partners’ existing business models.

The Austrian company acts as the owner of the captive in this regard, and underwrites, supports and manages the insurance policies. Partner companies are selected using criteria such as solvency, existence of European headquarters and compliance with applicable EU regulations. In addition, they must contribute to enhancing the brand, while having strong branding and good brand recognition themselves. The captive insurance optimisation service run by the Austrian company offers assistance with meeting the criteria, marketing and modelling the business field.

As a result, the Austrian company creates an attractive service market for itself that is related to niche sports, and, thanks to its partners’ heterogeneity, is also able to reach new target groups for its core product. Blockchain technology is used to manage all the insurance services through the Austrian company’s captive for the partner company and the end customer. Policies, transactions and the exchange of information happen via the blockchain, and the digital processes boost operating efficiency as a whole. Costs can be allotted via the captive solution in a transparent way, based on who incurred them, which benefits partner companies and end customers. Partner companies benefit from secure infrastructure that uses fewer resources because of the insurance-as-a-service approach. Digital contract management and billing in real time, automatic management and documentation of proof in a loss event, for example, or the reduction of human interaction thanks to smart contracts, boost functionality and reduce costs for the partners.

In addition, partner companies can benefit from a shared database and collaborate on the development of insurance products. The market is also cultivated to suit the target group, thanks to the exchange of information, e.g. customer profiles, between the companies. The option to pay with cryptocurrencies can reduce transfer costs and accelerate transactions or refunds due to the consent mechanisms involved. At the same time, this eliminates currency fluctuations.

Incentives and gamification elements boost sales for all the participating partners, and can tap into new potential outside insurance services.

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