Case Study

A blockchain solution for dispute resolution

The first experiment in Italy to create a new digital platform for alternative dispute resolution in the insurance industry, based on blockchain technology.

The solution

The mission of the “Alternative Dispute Resolution” (ADR) initiative was to test a digital platform for alternative dispute resolution in the insurance industry, for controversies related to vehicle claims.

The initiative stems from the desire of insurance companies to identify effective and efficient mechanisms for the early resolution of disputes that avoid recourse to litigation and protect the insured party's right to compensation.

The ADR platform has been developed on top of the Hypeprledger Fabric blockchain protocol to manage the entire life cycle of the dispute: from the invitation to negotiation, when the assisted negotiation agreement is drawn up, to the actual negotiation process, when smart contracts defining the automatic matching between the offers of the two counterparties are activated, up to the closing of the negotiation, when the agreement or non-agreement of the assisted negotiation process and the related documentation are generated.

The ecosystem

The initiative, promoted by CeTIF - Università Cattolica and Reply, under the supervision of IVASS and ANIA, has seen the active participation of insurance companies, specifically Axa, Cargeas- Cardif, Cattolica, Generali, Helvetia, Reale ITES GEIE, Sara and Zurich, as well as liquidators belonging to insurance companies and the legal representatives of insured users.

The project is part of the Insurance Blockchain Sandbox, a unique and controlled virtual place to test real-life use cases with a highly innovative impact with the active participation of companies, consumers and the different actors involved in the insurance process.

Through blockchain technology, participants in the trial were able to test a digitalized solution of a traditional insurance process and to assess its benefits and risks.

Benefits of the solution

The main benefits, tested, experienced and confirmed during the pilot phase of the experiment by participants include:

  • Greater efficiency of the process as a whole, from the invitation to negotiation to its conclusion

  • Greater security, fairness and transparency for negotiation participants, given the knowledge and sharing of the functioning mechanisms of the agreement

  • Greater effectiveness in reaching an agreement, given the pre-established definition of the mechanisms for regulating consensus

  • Greater standardization of the process and quality of the documentation produced, thus providing greater protection for the system.

Next Steps

The positive results of the trial, referring both to the possibility of digitalizing the Assisted Negotiation process and to the use of the blockchain as an enabling technology, make it possible to assess possible extensions of the scope in terms of both the number of cases and the type of claims.