Laurent Benichou, is Head of Blockchain Europe & US, that sits within the Group Emerging Technologies and Data team at AXA. In this podcast we discuss the main takeaways from his experience with Fizzy and more importantly we discuss how can blockchain and insurance be good bedfellows. Laurent shares with us some of the main mistakes insurers make with blockchain but he also the main blockchain opportunities that exist in insurance.

 
What is blockchain?
In August 2018, Laurent defined on Insureblocks blockchain as:

"A blockchain is a fully distributed database. This means it has no single point of failure and no central managing authority.

Blockchain’s technical characteristics, such as its immutability and cryptographic verification, create numerous convenient features including fast and easy payments, smart contracts and the ability to indefinitely store information."

At that time his answer was a very technical one which he believes misses the essence of what is blockchain. Today, Laurent defines blockchain as a digital system of uncensored value transfer. The winning present blockchain use cases are ones around the exchange of value, such as Bitcoin and lending with stable coins.

 
Main takeaways of Fizzy

In September 2017, AXA launched Fizzy. Fizzy is a fully automated flight delay insurance policy that runs on the Ethereum blockchain and allows customers to get indemnified as soon as they arrive to their destination. The process is fully automated, with a smart contract deciding whether customers are eligible for indemnification.

In November 2019, over 2 years after its launch AXA closed Fizzy. Laurent describes Fizzy as an opportunity to test out a new type of product based on blockchain technology. It provided his team with an incredible experience, which grabbed a lot more media attention that they had anticipated. They gained a lot knowledge during that experience on things such as: how to use a blockchain, how to handle gas fees on Ethereum, importance of auditing a smart contract, and much more.

Taking the learnings from Fizzy, Laurent has the following top tips for aspiring blockchain projects:

* It’s always easier to convince people with a functioning proof of concept than with a PowerPoint.
* Never underestimate the cost and complexity of distribution especially when it comes to a B2B to B2C model.
* All new digital services need to be API and mobile first

 
Does blockchain and insurance make bad bedfellows?
On the 24th of August 2020, Laurent wrote on Medium an article entitled “Navigating blockchain opportunities in insurance”. The first line of his article states:
“Unifying Insurance and Blockchain has so far been the most difficult task of my entire career”.
Laurent believes that insurance can play a part in protecting the crypto sector. He also believes that at their core both blockchain and insurance share...