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Chainlink and Etherisc Joint Grant Program
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Chainlink/Etherisc Grant Application: ver.de AG - Group contracts for bicycle insurance on blockchain basis #2

Open Nightverde opened 2 years ago

Nightverde commented 2 years ago

Grant Proposal: : Group contracts for bicycle insurance on blockchain basis (basis for insurance products household, liability)

Name of Project: ver.de AG - Group contracts for bicycle insurance on blockchain basis

Proposal Category: integration-adoption

Proposer: Nightverde

(Optional) Technical Sponsor: Matthias and Christoph from Etherisc

LICENSE Do you agree to open source all work you do on behalf of this RFP and dual-license under MIT and APACHE2 licenses?: Yes

Project Description

We aim to become Germany's first sustainable property insurance company. We want to do things differently: cooperatively, in the public interest, transparently, socially, and sustainably. Our first product, ver.de BIKE, is already on the market and, in response to demand from our potential customers, we intend to expand the ver.de BIKE product to include group contracts. The long-term goal is to offer our most popular products, household, and liability insurance, with BaFin approval.
So far, ver.de uses an open-source standard software environment for this purpose, which has been adapted to ver.de's needs: Our hardware runs mostly on Linux (mint), and for the website interface we use Wordpress as well as a store solution from Wordpress.
Our goal is to use open source blockchain technology for transparent inventory management in the long run: Customers* can see the status of their contract in it and make legitimate changes to their data themselves (such as address changes, adding new bikes, etc…).

Value

- What are the benefits to getting this right?
  We intend to use the Blockchain Technology as a secure, easily scalable, and freely available technology, which should subsequently 
  also save It costs and clerical and administrative costs. And to be adapted and further developed for later products. BaFin requires a 
  good IT solution and solid calculations for the IT costs for the approval. Here, we see great potential in blockchain technology.

- What are the risks if you don't get it right?
  Have a traditional untransparent IT infrastructure which is not able to handle crypto currencies. When the government introduces 
  crypto currencies, those IT systems would be outdated. 

- What are the risks that will make executing on this project difficult?
  Customer familiarity with blockchain.
  Mapping/reflecting insurance laws on blockchain infrastructure.
  Auditing and reporting.
  Communication between traditional and blockchain systems.

Deliverables

A green insurance that is based on blockchain infrastructure.  The blockchain should keep the customer data safely and compliant with GDPR and should be modifiable to allow the customers to make changes within the contract (adding/removing bikes, address change, upgrade/downgrade). A system that is allowing auditability and ready for communication with broker systems. A system providing legitimation and authorization.

Chainlink acts as an oracle provider for claims processing on the blockchain:
This process can be extended and generalized to general claims processing with the following general components: A trigger function (e.g. upload report), a review function by an expert, determination of cause and amount of damage, approval or rejection, fraud, recovery.

The processing of bicycle theft claims is a good example of this. General steps of claims processing such as checking whether there is a contract, whether the premium has been paid, whether multiple claims have been reported by the same customer earlier, etc. are performed independently by the blockchain of etherisc.

In this case, the claims process with chainlink oracles begins with an interface through which customers upload the theft report received from the police. Once the report is submitted, a review process begins where an insurance adjuster reviews the report. For example, in the case of a theft report, a claims adjuster verifies that the report is genuine, as well as the date, object, etc. If the report is approved, chainlink proceeds with processing the claim. The next step is to determine the amount of the claim. In case of rejection, a fallback function would be implemented (e.g., contacting the customer again). The claim is also marked as suspected fraud if there is a suspicion of fraud, or marked as a potential case for recovery if there is evidence of this.

In this use case, the police theft reports are uploaded and connected to etherisc's smart contract blockchain. The release of the claim by the expert is transmitted to the smart contract blockchain with all related documents and information via the chainlink oracle and this triggers the payment of the claim. In case of a rejection, the documents from the chainlink including the justifications by the claims handling expert are also transmitted to the blockchain and archived there.

At a later stage of the project, other claims can also be processed with the help of the chainlink oracle, uploaded to the smart contract blockchain and triggering the payout: for example, also fire and burglary claims, as data from fire department reports or police reports and notifications can be uploaded here as well and processed manually or automated later. Also tap water damage, electronic damage or liability damage can be processed in perspective with Chainlink as oracle, the documents and results can be transferred to the blockchain for archiving and the oracle can trigger corresponding payouts of the smart contract blockchain

Development Roadmap

![Development_Roadmap](https://user-images.githubusercontent.com/103127713/162396406-1f1dbf47-f3fa-43ee-8f0d-161c9dd757c7.png)

Total Budget Requested

Total Budget: 80.000 EUR for:
- Internal/External development staff
- Technical infrastructure (e.g. additional servers)
- External Consultancy

Maintenance and Upgrade Plans

Develop and prepare the blockchain for more products. Extend the interfaces with more actions/functionalities.

Team

Team Members

- ver.de AG
- Techgenossen eG

Team Member LinkedIn Profiles

- https://www.linkedin.com/company/verde-ag/
- https://www.linkedin.com/company/techgenossen/

Team Website

https://www.ver.de
https://techgenossen.de/

Relevant Experience

**ver.de**: Offers protection solutions for the safety of their customers for bikes and other items against theft, vandalism and crash. The team has developped all the processes and is at market since 2020.

**techgenossen.de**: Conceive, design, and develop future-oriented digital products. Bad web applications harm the environment, the democracy, the economy. And annoy. With Techgenosssen, digital is better: holistic, resource-saving, public good-oriented.

Additional Information

We use open-source software. 
We have been elected as social business (see https://euclidnetwork.eu/2022/03/top-100-women-in-social-enterprise-2022/)
We generate positive impact with our assets in a transparent way, (see https://www.ver.de/kapitalanlage)
s0288 commented 2 years ago

Is this Issue format intended for comments as well?

If so, I have the following questions:

1)

In case of a rejection, the documents from the chainlink including the justifications by the claims handling expert are also transmitted to the blockchain and archived there.

2)

Chainlink acts as an oracle provider for claims processing on the blockchain

3)

Once the report is submitted, a review process begins where an insurance adjuster reviews the report.

Best of luck with the proposal :).

Nightverde commented 2 years ago
  • You mention that you want to be compliant with GDPR/BAFIN regulations and that claims documents will be archived on the blockchain. How do you make sure that personal data is not publicly available?

Part of our project is exploring the most fitting solution to meet all the legal grounds. Currently we have two possible solutions in mind: Use public blockchain with encrypted data Use private blockchain

  • It is my understanding that you need a private oracle - in the sense that there is only one claims review (either done by you or an independent party). How can a customer trust the Oracle? In other words: How is this review process more transparent or less costly than a traditional review?

  • If you require claims handlers for manual review, how will the administrative expenses of this bicycle insurance be lower than traditional bicycle insurance? To me, it seems like you "only" use the blockchain as a database, with the usual overhead more or less interact (+ middle men like oracle nodes).

As starting point, we believe having our process and data on the blockchain where the customer can see their policy is more transparant than traditional database. The model will especially unleash further competitive advantage and price advantage when governments adopt cryptocurrencies.

We will include upgrades into a more automated process also for claims handling. For example, we consider exploring the transition from manual claims review into OCR based review. Essentially, we will be building and automating the model within time. Our team has legal expertise, claims handling expertise and insurance expertise and we believe we can create a model that supports a unique approach to bike insurance but also a model that is extendable into any other insurance.

Best of luck with the proposal :).

Thank you ! :)

Nightverde commented 2 years ago 
Dear Brett, 

Hope my email finds you well. 

Thank you for your comments on our proposal. 

We have answered your questions on Github. Kindly, find our Github comment at the following link and as following:

https://github.com/etherisc/chainlink-and-etherisc-grants/issues/2#issuecomment-1168986030 

Kind Regards, 

Mohammad 

 On 20/06/2022 21:39 Alex ***@***.***> wrote:

Is this Issue format intended for comments as well? If so, I have the following questions: 

In case of a rejection, the documents from the chainlink including the justifications by the claims handling expert are also transmitted to the blockchain and archived there. 

You mention that you want to be compliant with GDPR/BAFIN regulations and that claims documents will be archived on the blockchain. How do you make sure that personal data is not publicly available? 

Chainlink acts as an oracle provider for claims processing on the blockchain 

It is my understanding that you need a private oracle - in the sense that there is only one claims review (either done by you or an independent party). How can a customer trust the Oracle? In other words: How is this review process more transparent or less costly than a traditional review? 

Once the report is submitted, a review process begins where an insurance adjuster reviews the report. 

If you require claims handlers for manual review, how will the administrative expenses of this bicycle insurance be lower than traditional bicycle insurance? To me, it seems like you "only" use the blockchain as a database, with the usual overhead more or less interact (+ middle men like oracle nodes).

Best of luck with the proposal :). —Reply to this email directly, view it on GitHub, or unsubscribe.You are receiving this because you authored the thread.Message ID: @.***> 

--

Mohammad Ahmed

ver.de für nachhaltige Entwicklung e.G. ver.de Projektgesellschaft AG

Probier's aus: check.ver.de

Tel. +49 89-4161-19190 Fax +49 89-416119195

https://www.ver.de/ @.***

Frundsbergstr. 23 D-80634 München

ver.de für nachhaltige Entwicklung e.G. GnR 2674, Amtsgericht München

Vorstand: Dr. Marie-Luise Meinhold, Elena Sulzbeck Aufsichtsrat: Christoph Mussenbrock, Heidi Schiller, Dr. Wilko Meinhold

ver.de Projektgesellschaft AG HRB 247494, Amtsgericht München, Sitz München

Vorstand: Dr. Marie-Luise Meinhold Aufsichtsrat: Christoph Mussenbrock, Heidi Schiller, Dr. Wilko Meinhold

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