Presented first at Swiss Re's Center for Global Dialogue, 23/01/17. A deep dive into a very interesting, if longer term, use case for leveraging ecosystem application technology: resilience bonds.

1. Use Case Examination - Risk Securitization

2. Monax is the company behind eris, an open platform for
developers and devops to build, ship, and run
blockchain-based applications for business ecosystems.
Monax sells legally compliant smart contract-based
SDKs and premium support to accelerate your time to
market with sophisticated ecosystem applications.

3. What are blockchains, smart contracts, & ecosystem applications?

4. Blockchains
Event logs
assumed to be operated
and ordered across
multiple organizations
Who did
what
when
Data Assurance
across organizations
For more information click here

5. Smart Contracts
Scripts
assumed to be operated
and verified across
multiple organizations
Who did
what
how
Process Assurance
across organizations
For more information click here

6. Ecosystem Applications
Applications operated
by multiple organizations
The real paradigm
shift
For more information click here

7. What is risk securitization?

8. Risk securitization seeks to encapsulate risk into a
securitized instrument that can be bought and sold on
markets.
Risk securities use a risk index to value the security or a
specified loss event and explicitly factor risk factors
into pricing of the instrument.
Risk securities allow us to leverage markets to insure
big, complex events.

9. Catastrophe Bonds
Debt instrument meant
to raise money in case of
a catastrophe such as a
hurricane or earthquake.
Resilience Bonds
Link catastrophe bonds
with capital investments
in resilient infrastructure
to reduce losses.

10. The ecosystem of resilience bonds

11. What problems do risk securitization systems need to address?

12. Authenticity & attribution
costs
(is the data reliable?)
Reconciliation costs
(is the data current?)
Coordination costs
(humans to coordinate = $)
Problem...

13. Authenticity & attribution
costs
(is the data reliable?)
Reconciliation costs
(is the data current?)
Coordination costs
(humans to coordinate = $)
Problem...
Chain of custody over data
(is the data used by pricing
models accurate?)
Project Management
(are the capital projects on
track?)
Super-organization focus
(how will rebates work?)
Requirement...

14. Authenticity & attribution
costs
(is the data reliable?)
Reconciliation costs
(is the data current?)
Coordination costs
(humans to coordinate = $)
Problem...
Chain of custody over data
(is the data used by pricing
models accurate?)
Project Management
(are the capital projects on
track?)
Super-organization focus
(how will rebates work?)
Requirement...
Data Assurance
across organizations
Process Assurance
across organizations
New Opportunities
to co-create value
Ecosystem Apps Provide...

15. Why are ecosystem applications a good fit for resiliency bonds?

16. Data Assurance
across organizations
Process Assurance
across organizations
New Opportunities
to create value
Ecosystem Apps Provide...
Chain of custody over data
(is the data used by pricing
models accurate?)
Project Management
(are the capital projects on
track?)
Super-organization focus
(how and when will rebates
flow?)
Requirement...

17. Data Assurance
across organizations
Process Assurance
across organizations
New Opportunities
to create value
Ecosystem Apps Provide...
Fidelity over pricing model
data, even in novel markets
End to end lens on resilient
infrastructure processes
Optimize instrument’s
objectives across
stakeholders
Benefit...
Chain of custody over data
(is the data used by pricing
models accurate?)
Project Management
(are the capital projects on
track?)
Super-organization focus
(how and when will rebates
flow?)
Requirement...

18. What would a risk securitization ecosystem application look like?

19. Sample Network Architecture

20. Sample Application Architecture

21. Sample Operational Architecture

22. How could this ecosystem application move into production?

23. Educate
Value proposition clear
Mindset shift understood
Experiment
Explore viable use cases
Identify production path

24. Prototype
Remove scaffolding
Extend participants
Go Live!
Harden, harden, harden
Governance framework

25. How can Monax help you build this, or another, ecosystem application?

26. Software Development
Kits
Our SDKs allow your team
to focus on your
application's true
potential.
Addon Modules
We have a range of
add-on modules for our
SDKs providing turn-key
solutions for specific
uses.
For more information click here

27. Support
Our support packages
help teams reduce the
friction of building
ecosystem applications
that will resonate in the
marketplace.
Education
Every support package
includes access to
monthly learning
sessions with our
industry-leading
engineering team.
For more information click here

28. Monax products recommended
for this use case:
● eris: The Ecosystem Application Platform
● Insurance SDK
● Dual integration addon module
● Business process modelling addon module
● Claims management addon module
● Catastrophe bonds addon module (Q2, 2017)
● Parametric insurance addon module (Q2, 2017)
● Insurance SDK Apache Camel plugin (Q3, 2017)
● Enterprise package - Monax premium support &
education

29. Contact the Marmots!
Build your ecosystem applications
with Monax