Addenda, a DIFC-based InsurTech startup is leading the traditional insurance sector into the future with blockchain. The firm essentially has built a blockchain platform that "uses distributed ledger technology to streamline processes between insurance companies."
It has now reached a significant milestone in its journey where five insurance companies have signed up for its platform. Addenda announced that Aman Insurance, Al Wathba Insurance, National Takaful Company (Watania), Noor Takaful and Oriental Insurance have become the "region's first ever insurers to transact their insurance claims with each other on the blockchain!"
We're pleased to have started our journey as part of DIFC FinTech Hive. The accelerator program last year was an acceleration towards achieving a pivotal product and gaining new flagship clients, many of which are in the insurance sector.Karim Davis Dib, COO of Addenda
Founded by Karim Davis Dib and Walid Daniel Dib, Addenda's journey began in 2018 when it joined the seco cohort of DIFC's FinTech Hive accelerator programme. Since graduating, it has received a license to operate in the financial centre and has made significant headway in the development of its game-changing InsurTech solution.
The InsurTech market revenue is growing at a rate of 16 per cent globally as disruptive technology transforms the market. In 2018, the global InsurTech market revenue valued at US$ 533 million and is expected to reach over US$ 1 billion by 2023.
Insurance companies in the region — for whom claims processing remains an expensive process — are realising the potential of blockchain and how it can help them grow while keeping costs low and improving their bottom line figures.
By having the support of DIFC and now the five insurance companies, Addenda is in a great position to lead the sector in the UAE.
“As a member of the DIFC FinTech Hive partner network, we were delighted to play a role in Addenda’s journey. The new Blockchain technology is a first for the region and will enable institutions in the MENA region to collaborate more efficiently, eliminate intermediaries and speed up claims. It also has the potential to solve legacy challenges and to become the blueprint for the digital insurance technology of the future.”Rajesh Sethi, Chief Executive Officer of Noor Takaful
Blockchain will certainly play a huge role in revolutionising the traditional industries, and insurance remains one of the focal points in the region. Given DIFC's commitment to shape the future of finance in MEASA, it is supporting startups that will help realise this vision. It revealed in a statement that about 15 percent of applications received for the 2019 cohort of DIFC FinTech Hive’s accelerator programme are coming from InsurTech firms.
The past week has been very eventful for blockchain in the Middle East. Yesterday we captured all that was going, check it out below: