Use Case Examination - Risk Securitization

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.

What are blockchains, smart contracts, & ecosystem applications?

Blockchains

Event logsassumed to be operated

and ordered across multiple organizations

Who did what when

Data Assuranceacross organizations

For more information click here

Smart Contracts

Scriptsassumed to be operated

and verified acrossmultiple organizations

Who didwhathow

Process Assuranceacross organizations

For more information click here

Ecosystem Applications

Applications operatedby multiple organizations

The real paradigmshift

For more information click here

What is risk securitization?

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.

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.

The ecosystem of resilience bonds

What problems do risk securitization systems need to address?

Authenticity & attribution costs

(is the data reliable?)

Reconciliation costs(is the data current?)

Coordination costs(humans to coordinate = $)

Problem...

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...

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 Assuranceacross organizations

Process Assuranceacross organizations

New Opportunities to co-create value

Ecosystem Apps Provide...

Why are ecosystem applications a good fit for resiliency bonds?

Data Assuranceacross organizations

Process Assuranceacross 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...

Data Assuranceacross organizations

Process Assuranceacross 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...

What would a risk securitization ecosystem application look like?

Sample Network Architecture

Sample Application Architecture

Sample Operational Architecture

How could this ecosystem application move into production?

Educate

Value proposition clearMindset shift understood

Experiment

Explore viable use casesIdentify production path

Prototype

Remove scaffoldingExtend participants

Go Live!

Harden, harden, hardenGovernance framework

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

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

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

Monax products recommendedfor 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

Contact the Marmots!

Build your ecosystem applications with Monax