Imagine a world where a claim is paid before the customer realises they have experienced a loss. Lloyd’s recently published vision for the future invites us to visualise a next generation claims service that offers a transparent and automated response to customer loss.

Smart contracts and parametric insurance could be applied to make this vision a reality. They have the potential to automate aspects of traditional insurance contracts including risk placement, payments, warranty enforcement, claims assessment and settlement.

With Lloyd’s market participants exploring and adopting these technologies, Lloyd’s has launched two reports that look at how smart contracts and parametric insurance can power efficiency and enhance the customer experience.