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Listen: Ep. 83 Addenda a blockchain motor insurance subrogation ecosystem in the UAE

"ADDENDA that has recently launched out of the United Arab Emirates. And I'm very pleased to have guess who will lead no not meet but will lead Daniel. CEO and Co founder of Addenda will lead. Thank you for joining us today. Gives you please give our listeners. There's a quick introduction on your cell. Yeah absolutely thanks. We'd so yeah. My name is Willie Daniel on the CO founder Ordina. It's a bit to be in short tech We started it In March two thousand eighteen was when we were identing over at my brother and I were team of five at the moment Prior to that I was a loss of justice so mike speeds wasn't the insurance ecosystem before mainly on the ground as just In September is when we properly founded the company with illegal registration all that stuff here in the UAE in the NFC by international financial center. And since since then we built a couple of prototypes which not light. You did not work out. At the beginning. We had a a a a life insurance solution. That was more of a solution looking for a problem. Elim consumer life solution and then we struck gold outside when we came up with the motor insurance subrogation solution currently working on brilliant brilliant. I love the the honesty. And that's the thing about entrepreneurs you know you keep trying until you find on a problem that you can solve tech so here at intruments. We always have the first question we asked our speakers. which is could you please explain to our listeners? What is blockchain and how does it work? Yeah definitely I mean so. You've got two types of networks would save got centralized and decentralized networks and maybe to an extent you could say distributed networks as well In a decentralized network network the amount of information that's shared a whatever it is shared between me you is also shared across the board and everybody else in the room depending on whether it's a private luxury the Republic blockchain that data could be encrypted and or shared with others without them knowing the content of that data. So that's what differentiates between public blockchain's chains and private blockchain's but go more in depth usually old school blockchain's and the one that I want to be careful using the word all schools lunch you know public public blockchain's rely on certain consensus mechanisms. Such as proof of work and proof of stake to operate. But more enterprise friendly blockchain's really rely on different types of consensus such as a Byzantine fault tolerance without going to too much jargon year. Basically means that if he'd Sends Waleed elite something as subject to certain Logic being the transaction is then broadcast to the network everybody confirms having seen it and then it's locked on our ledger for all brilliant and I'm sure everyone will be confused. which will lead? Are they referring to one of the things. I'm particularly excited to have you on podcast. Because you're our first Middle Eastern Insurance blockchain company on intra-bloc so that's that's great to have that so could you please tell us a little bit about addenda which is based out of the. Yeah definitely a team of five at the moment. Three of the five are developers certified by. Hi Is there a hyper ledger. Certified where using hyperloop fabric mainly as our a blockchain ecosystem The the focus on subrogation came by seeing that you know there was a huge issue in the UAE and in the region in general with regards to how many would certain insurance processes where we wanted to start with something that's high volume low value in claims so Wild property insurance would be a good idea via its very high value low volume while medical might have been a good idea as well. There's a lot of personal identifiable information there and that's a tricky to deal with here in this region so oh we settled on handing motor insurance claims and that's really Kicked off with about eight insurance company so far so to be honest with you we started again in in March last year July's when we properly quit our jobs all of us and the solution was more or less built by December two thousand eighteen but we only signed our first client This July so took well over a year to sign a first because the ecosystem here was not ready. I guess is for such a solution at the beginning but the cool thing is once you sign the first client in the same month. We signed a seven more. So yeah there's there's a full more element that's is clearly there in the insurance ecosystem in the that was pretty interesting at the moment where A little bit overwhelmed. I guess it's a good problem to have So we're hiding adding as fast as we can account managers and and more developers to ensure that we meet the requirements for the clients who have signed up. So that's brilliant because in in a way it didn't take that long compared to other countries you just like that for his client and even less to send him to his other ones. You're obviously tapping into an untapped tap. Need so why is it. That we haven't heard about other blockchain initiatives within insurance sector out of the Middle East because you've clearly demonstrated there is a need for that that Oh absolutely the thing is I would I would take it a bit even on a more macro level. Why haven't you heard of more ensure text? In general in the Middle East there are four or five prominent prominent in short texts here most of which are in the aggregate their space. To be very honest with you. So deep tech the focus on that. I think we're still a couple of years away from that. Also it's could be an issue with regards to technical talent The region I wouldn't say lacks technical talent but I would say is is currently. There's more people looking for it than it is available Slap that is one of the main issues that I think stopped people but as you can consi now with the exits of recent large large. I wouldn't call them startups anymore. Keti him being sold to Uber for three billion Which I think is about one billion dollars a bit more than that Asu Being sold to Amazon. There's now a bigger appetite for both investors thor's governmental entities and even clients to take ensure tech's Whether blockchain or otherwise A bit more seriously brilliant. Brilliant so tell us a little bit about the insurance market in UAE. 'cause I understand that the intrinsic system there is increasingly becoming more competitive because sixty plus of the insurance companies is dominated by the top five insurers control more than fifty percent of the gross written premium. How are the small insurers chirs reacting to this right so it's very interesting the you've gotta a small relatively small country with so many insurance companies where you know? The vast majority control single digit percentages if not less of the market. What we're beginning to see is you've got mergers and acquisitions Bubbling on the horizon a lot of gossip in the market about a major DECAF Kind of merger happening between Keith. koffler players here in the and in the wider region That I don't know if that's going to be sufficient but I'm pretty sure that in the next three he to five years you're gonNA see a lot less number of insurance companies because some would have bought out others. There have been several attempts already this year and last year for this to take take place but it's a slow process. I think it would pick up pace as and when competition gets more severe given the current economic circumstances. Okay okay so let's come back to Benda. What is the problem? You're trying to address. And why did he choose Shredding Motor Separation Information and opportunity for your market and you touched upon their insurance white. You know the others weren't quite a good match but for you to to delve into a more deeper than what were the challenges. You are looking to address odd percent. I mean the the issue we have today with motor insurance. I'm just going to give you on a high level. What one claims lifespan? Looks like. And then you're going to see. Just how many letters and then from there the the the blockchain consequence kind of speak for itself so today. If I haven't accident if we lead hits release car being addendum Safeway heads ensure boxes car. And it's my fault. I was the one that I hit you behind. We both have comprehensive policies. So Oh i go to my insured or you go."

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Ep. 83 Addenda a blockchain motor insurance subrogation ecosystem in the UAE

Insureblocks

3 weeks ago

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Ep. 83 Addenda a blockchain motor insurance subrogation ecosystem in the UAE

Insureblocks

3 weeks ago

United Arab Emirates Willie Daniel Middle East Middle Eastern Insurance Blockchain Co Founder Of Addenda CEO Safeway