Introduction

The InsurTech world continues to rumble. It's an entangled struggle, pitting classic and contemporary heroes with generational ideologies over trillions of dollars and taxing service challenges. 

The Web3 InsurTech Foundation (www.w3if.org) drives the development and adoption of Web3 technology to enable superior financial security for communities through advanced insurance mechanics. Our open-source community drives progress through conversation, standards, and the delivery of the Web3 InsurTech Operating System.

Moving traditional insurance to the blockchain presents numerous obstacles and new opportunities to rethink shortcomings.  Today, we begin a multi-part series dedicated to Know Your Client and Anti Money Laundering (KYC/AML) for InsurTech. We will discuss the best approaches and changes to enable blockchain solutions for InsurTech.  Finally, we will dive into some of the work the W3IF is doing to bring KYC/AML to fruition.  

Enjoy your journey with us.

To set the stage for our journey, our roadmap for exploring the challenges and opportunities for InsurTech and KYC/AML encompasses the following themes. We will explore the why, what, when, how, and how InsurTech is best positioned to solve.  

Why should InurTech comply?

Many have asked this great question; after all, blockchain is trustless and distributed. The team explores the reasons why it's not just good for business but also how we can achieve quality outcomes for society.  Read the compelling article and share your thoughts.

Identify and Verification

In a distributed and trustless world, how do we establish identity and verification for customers, their assets, and their valuation?

Risk Assessment

Decentralized assets and customers present considerable challenges to risk quantification. Essential to prudent risk modeling, risk assessment ensures a system that generates predictable and equitable outcomes.

Enahnced Due Diligence

Blockchain enables a level of transparency and immutability never seen before. How do we leverage this essential trait to improve the mutual trust issues that plague insurance?

Ongoing Monitoring

Another essential feature of blockchain technology is monitoring the system and maintaining the Quality of Service and core governance mandates.

Record Keeping

Demonstrate the incredible advantages of a distributed public ledger and how that is used to satisfy legal, regulatory, and financial goals.

Training and Compliance

The system is built to address ongoing skills and compliance verification needs, yet another great use of distributed ledger technology.

Technology and Data Analytics

The open, distributed nature of blockchain technology enables many noninvasive paths to data analytics, which are used to ensure financial compliance with KYC/AML.

Information Sharing

Finally, the distributed ledger and its ability to distribute immutable transactions in real-time allow anyone to verify the completeness and compliance of all aspects of the KYC/AML process.

When we started using leading-edge technology such as Blochain and Generative AI to solve a complex challenge like insurance, even the team was skeptical that it was an actual solution. However, as we have worked through these challenges over the past three years, we have begun to see how this exciting work is poised to have significant, positive impacts on the world around us.

Please join us soon as we explore the most critical question we faced when conversing in this field: Why? Part II will explore the why of KYC/AML. Knowing the why establishes the foundation for future discussions of the eight themes presented above.