►
From YouTube: Ricardian Insurance Risk Transformation Language - Vipin Bharathan, DLT.NYC & Kirthi Kurra
Description
Ricardian Insurance Risk Transformation Language - Vipin Bharathan, DLT.NYC & Kirthi Kurra, Civitas Fintech
Today distribution of contract information in the reinsurance space is via email, paper and pdf. These legacy practices prevent straight through processing of information adding cost, duplication and drag to the insurance value chain. Our proposal highlights the need for Ricardian contract structure in reinsurance. We discuss how the form allows a contract to move from the world of law, through the world of cryptography and into the world of accountancy. We articulate how Insurance risk transformation (Transformer: Vehicles) can deliver capital efficiently to Carriers, and ring fence it using UK HM Treasury design principles. We strive to ease flow of capital, improve transparency and efficiency by the incorporating Ricardian insurance risk transformation (RIRT) in Hyperledger. A new lab is being constituted under Hyperledger banner, to be live by June 2021.
Session Details & Slides (if available)- https://sched.co/j3di
Access All Sessions: https://events.linuxfoundation.org/hyperledger-global-forum/program/schedule/
----
Hyperledger – Open Source Blockchain Technologies
Hyperledger is an open source community focused on developing a suite of stable frameworks, tools and libraries for enterprise-grade blockchain deployments.
It serves as a neutral home for various distributed ledger frameworks including Hyperledger Besu, Fabric, Sawtooth, Indy, as well as tools like Hyperledger Avalon, Cactus and libraries like Hyperledger Aries, Ursa. Learn more about Hyperledger projects: https://www.hyperledger.org/use
Case Studies: https://www.hyperledger.org/learn/case-studies
Training & Certification: https://www.hyperledger.org/learn/training
Tutorials: https://www.hyperledger.org/use/tutorials
Webinars: https://www.hyperledger.org/learn/webinars
Events: https://www.hyperledger.org/events
Vendor Directory: https://www.hyperledger.org/use/vendor-directory
Subscribe to the Hyperledger Newsletter: https://www.hyperledger.org/newsletter
Follow-us on Twitter @Hyperledger
Learn about Hyperledger Membership: https://www.hyperledger.org/about/join
#Hyperledger #HyperledgerGlobalForum2021 #Blockchain
A
Yeah
once
again
welcome
to
hyperledger
global
forum.
Today
we
are
covering
insurance
linked
securities
and
regarding
contracts,
nothing
too
heavy,
but
we're
just
introducing
the
concept
of
basic
ricardian
contracts
and
how
they're
integrated
and
and
what
we're
trying
to
do
is
provide
a
construct
of
ricardian
contracts,
deeply
into
gate.
A
B
A
Ahead,
no
worries,
no
worries.
Mother
cheers,
okay,
going
back
to
the
conversations
yes,
so
we're
talking
about
how
we're
looking
at
modeling
and
bringing
in
concepts
of
regarding
contracts
into
insurance
linked
securities
and
the
basic
objective
is
to
try
and
create
bring
in
some
of
the
capital
markets
rigor
into
the
insurance
industry
and
that's
what
we
are
trying
to
achieve
by
this
objective.
A
B
B
B
A
A
Now
I'm
focused
on
two
specific
areas.
One
is
looking
at
liquidity
within
the
insurance
linked
securities.
I've
been
working
very
closely
to
weapon
as
a
part
of
the
hyperledger
capital
market,
special
interest
group
and,
and
one
of
the
areas
that
we're
pursuing
as
a
part
of
this
group,
is
to
look
at
some
of
the
basic
fundamental
problems
of
better
liquidity
in
the
market
for
insurance
linked
securities.
A
I'm
also
doing
like
a
joint
research
paper
with
a
balancer
on
trying
to
look
at
how
regulated
liquidity
pools
could
possibly
solve
some
of
the
challenges
that
we
have
today
in
the
insurance
capital
side
of
things
and
securitization
aspects
as
well.
So
that's
that's.
My
brief
introduction
today
here
here
is
a
quick
agenda
review
of
the
agenda
and
what
we're
going
to
talk
about
is
a
brief
introduction
to
insurance
link
securities
challenges.
A
A
A
First
slide
what
are
insurance
link
securities,
so
these
are
financial
instruments,
they're
sold
to
investors,
sophisticated
investors,
so
mostly
institutional
customers,
and
it's
for
the
investor
or
some
of
the
benefits
are
to
look
at
it
as
having
no
correlation
to
capital
markets
whatsoever.
It's
all
respect
to
an
insurance
risk,
but
for
the
insurer
or
the
insurance
firms,
it
means
transferring
risk
from
the
insurance
book
into
capital
markets.
A
Now
there
are
certain
conditions
or
certain
points
in
in
the
insurance,
while
you
stream,
when
they
choose
specific
ils
products,
but
we'll
we'll
touch
upon
that
as
and
when
we
get
into
the
details.
But
what
is
this?
This
is
nothing
but
a
simple
journey
which
shows
how
risk
is
onboarded
by
an
insurance
company
and
passed
on
to
capital
markets.
A
So
from
the
left,
you
can
look
at
the
sponsor,
which
is
nothing
but
an
insurance
company.
They
use
a
contract
structure
which
is
a
risk
contract
to
transfer
a
part
of
their
risk
book
to
a
reinsurer
and
a
reinsurer
is
is
passing
that
down.
So
you
can
see
that
highlighted
by
these
blue
flags,
and
these
blue
flags
indicate
any
contract
structure
that
exists
within
the
valley
chain.
A
What
we
simply
want
to
talk
about
is
the
basic
contracts
that
exist
in
this
process.
There
are
other
multiple
contracts
that
exist,
but
these
are
the
dominant
contracts
that
exist
between
most
of
the
players,
so
there
is
a
reinsurer,
and
now
the
risk
is
further
seeded
upstream
to
an
insurance,
special
purpose.
Vehicle
insurance,
special
purpose
vehicle
is
nothing
but
an
entity,
a
legal
entity
which
basically
transforms
the
risk
into
a
financial
instrument
of
some
sort.
A
A
Let's
say
exposure,
I
guess
to
account,
for
you
know
some
of
the
credit
default
risk
that
exists,
and
sometimes
the
fronting
partners
have
a
longer
duration.
So
that
means
there's
capital
available
for
a
longer
duration
for
the
investors,
of
course,
the
return
is
is
risk-averse
to
a
specific
extent
and
of
course
it
has
no
correlation
to
the
plastic
capital
markets
and
there's
a
very
clear
defined
maximum
loss
and,
of
course,
people
know
what
they're
getting
into,
and
it's
a
great
way
to
diversify
your
investment
portfolio.
A
Some
of
the
challenges
that
exist
today
within
this
space
and
they're
really
important
when
it
comes
to
the
ricardian
element.
So
why
we're
looking
at
the
ricardian
contractor
element
of
it
is
is
some
of
these
basic
challenges
are
raised
within
the
industry
and
what
we're
trying
to
do
is
we're
trying
to
break
these
boundaries
down
to
provide
better
capital
efficiency
in
the
market,
and
our
objective
is
to
solve
some
of
these
issues
that
exist
both
for
the
sponsor,
as
well
as
for
the
investor
so
being
able
to
do.
A
That
would
give
us
not
only
a
great
win
in
form
of
capital
efficiency.
It
would
also
give
quicker
capital
movement
from
capital
markets
to
the
insurer.
So
what
are
we
looking
at
over
here?
So
we're
looking
at
better
diversification,
so
now
most
of
the
insurance
is
market
is
is,
is
is
taken
up
by
cap
bonds.
This
is
like
a
you
know.
80
to
90
is,
is
in
cat
bonds
and,
and
there
is
limited
appetite
to
use
ils
for
any
other
aspects
of
risk
transfer.
A
Oh
catastrophic
bonds,
yes,
he's
are
financial
instruments
which
are
used
to
transfer
the
risk,
so
this
is
one
method
of
securitization
in
which
the
risk
is
securitized
as
a
bond,
and
this
bond
is
then
sold
to
end
investors,
and
these
are
generally
triggered
by
climatic,
but
anything
which
has
got
to
do
with
climate
risk
or
climate
exposure
to
any
type
of
assets,
mostly
into
property,
so
that
that
is
one
class
of
business,
which
is
predominantly
in
focus
here.
Some
of
the
other
challenges
is
high.
A
Brokerage
cost
cost
of
writing
through
many
brokers
and
intermediaries.
That's
one
of
the
challenges
of
doing
this,
and
some
brokers
or
intermediaries
do
not
understand
the
niche
underwriting
element
of
you
know
the
risks,
so
it
becomes
difficult
for
them
to
secure
capital
through
ils
and
finding
a
fronting
partner
for
unrated
capital,
so
sometimes
because
of
the
nature
of
the
risk
inside
in
itself
means
even
some
sophisticated
partners
find
it
difficult
to
interpret
the
the
extent
of
exposure
and
and
and
the
the
possibility
of
something
going
wrong
now
for
the
investor.
A
A
So
that's
the
basic
requirement,
so
possibly
looking
at
an
index
or
a
fund
of
funds
that
that
could
that
could
unlock
some
of
the
potential
by
using
regarding
contracts.
Of
course,
management
fees
and
management
fees
is
an
important
purview,
because
currently
the
cost
is
too
high.
Most
of
this
has
manual
elements
to
it
and
there's
barely
any
straight
through
processing
in
these
instruments.
Most
of
that
is
manually
done,
and
most
of
this
has
handled
as
an
otc
over-the-counter
aspect
of
trading
and
truck
collateral.
B
Yeah
before
we
go
further,
I
have
to
say
that
the
story
of
ils
is
very
similar
to
the
way
securitization
is
done
in
other
fields,
specifically
any
debt
based
securitization
like
credit
cards
like
mortgage-backed
securities,
which
obviously
was
prominently
in
the
picture
10
years
ago
for
15.
Now
it's
getting
on
12
13
years
ago
for
cratering
the
market
and
causing
lots
of
problems,
and
most
of
this
have
to
do
with
improper
assessment
of
risk,
but
recurring
contacts.
B
So
the
basic
elements
of
that
would
apply
to
any
sort
of
securitization
or
even
issuance.
So
basically,
the
idea
is
to
create,
through
the
stack
which,
based
on
technology
at
the
bottom,
cryptography
software
engineering
rights
and
then
writes
his
in
identity.
You
know
and
and
the
linkage
to
the
rights
in
a
contract,
and
then
it
goes
to
accounting,
which
is
basically
payments
or
obligations.
B
B
B
B
Innovation
was
to
make
this
into
a
global
witness,
using
a
proof
of
work.
That
is
a
major
innovation
in
bitcoin
which
has
taken
the
world
by
storm,
and
if
you
see
that
the
the
hash
creates
a
contract,
that
cannot
be
changed
and
the
other
aspect
of
the
contract
is
that
the
ricardian
pki
delivers
clarity.
B
That
means
in
that
same
document
you,
the
public
key
of
the
issuer
and
the
signing
key
are
in
the
contract,
and
it
is
through
relationships
that
you
know
that
the
issuer's
public
key
is
proper,
not
through
some
ca
or
something
else.
The
certificate
excuse
me
yeah
and
the
presumption
of
possession
that
is,
the
user,
has
the
contract,
which
the
is
that
kurti
was
talking
about,
which
is
transparency?
B
Does
the
investor
know
the
details
of
the
contract?
That
means,
if
I
have
the
hash
of
the
contract
and
the
contract
itself,
I
know
the
full
contract,
so
it's
easy
to
share
the
contract
with
and
it
cannot
be
altered
once
it
has
been
created
because
of
the
hash
and
the
signature
of
the
issuer
that
accompanies
it
and,
of
course,
the
promises
made
there
result
in
payments
in
accounting.
B
Next
slide,
so
there
there
it
is,
which
is
basically
the
bow
tie
model
as
it
is
called
the
contract,
which
is
a
human,
readable
contact
and
is
legal.
The
word
of
law
has
a
in
this
case
a
pgp
signature,
which
is
obviously
dates.
The
document
and
also
a
hash,
is
created
of
that
document,
and
it
is
immutably
linked
to
that
signature
and
that
becomes
the
founding
or
the
genesis
document
for
a
whole
stream
of
accounting
payments
that
result
from
it,
and
this
is
the
idea
also
in
cdm,
that
is
common
domain
model.
B
A
The
the
actual
practical
use
in
in
operations-
and
that
is
in
investment
operations,
perhaps
so
now.
What
we
talk
about
here
is
the
concept
of
several
layers
and
and
data
structures
that
could
possibly
exist
and,
and
some
of
these
are
derived
by
us-
the
solutions
that
we
are
currently
researching
and
and
what
we
feel
is
segregation
of
data,
which
is
the
core
data
versus
which
is
structured
data,
was
unstructured
data,
creating
what
is
known
as
an
integrity
in
a
data
structure,
and
on
top
of
that.
A
The
structured
part
of
the
contact
will
still
hold
things
within
the
cdm
format
and
and
follow
most
of
the
cdm,
which
is
nothing
but
a
common
domain
model
which
has
been
specified
by
international
swaps
and
derivatives
association,
and
what
we
do
over
here
is
to
look
at
two
things.
One
is
the
core
data
constantly
has
what
is
known
as
the
integrity
and
the
data
structure
check
something
like
a
linux
operating
system.
A
So
every
time
the
contract
is
loaded,
it
checks
it
for
integrity
and
and
this
this
layer
on
top
of
that,
is
integrated
into
what
is
known
as
a
logic
layer.
The
logic
layer
is
what
connects
the
contract
information
to
everything
which
has
got
to
do
with
day-to-day
operational
elements,
so
think
about
it
as
modeling
a
complex
system.
A
So
when
you
look
at
a
complex
system-
and
you
look
at
what
the
structure
of
a
financial
instrument
looks
like
today,
we
talk
about
replicating
that
into
some
sort
of
some
form
of
a
digital
twin,
and
what
this
digital
twin
is
nothing,
but
a
set
of
information,
which
is
financial
information,
which
takes
some
signals
which
could
be
either
analog
or
digital.
So
digital
is
something
which
is
triggered
from
within
the
system.
Analog
signals
are
something
that
can
be
optimally
triggered
from
the
user
or
sometimes
even
from
the
system.
A
Perhaps
so
it's
just
about
creating
the
model
in
such
a
way
that
it
is
a
replicable
digital
twin
of
the
whole
contract
in
itself
and
in
its
elemental
form,
represent
all
the
contractual
truth
and
legal
enforceability
of
the
the
contracts
which
are
built
on
top
of
it.
Now
the
last
layer,
on
top
of
it,
is
called
the
digitization
layer
that
we're
currently
looking
at,
and
this
helps
you
plug
the
interoperability.
A
Why
is
this
important
is
because
data
is
this,
makes
data
incredibly
portable
and
in
easy
to
plug
in
so
irrespective
of
blockchains
and
what
stacks
you're,
using
when
data
is
built
in
a
specific
format,
it
makes
it
incredibly
easy
to
put
the
data
from
one
technology
to
other.
So
that's
that's
the
fundamental
approach
for
this
method.
A
Second,
it
talks
about
how
the
model
integrates
with
various
elements-
and
it's
again
color
coded
to
show
what
integrates
to
other
parts
of
possible
day-to-day
operations
and
forward
integration
into
other
systems
and
how
this
can
be
defined
very
clearly.
So
you
can
see
that
the
core
data
could
be
anything.
It
could
be
a
counterparty
risk
contract.
It
could
be,
you
know,
risk
transfer
contract
and
it
could
also
be
a
cdm,
so
it
could
also
look
at
it
in
the
transaction
structure.