Otonomi & Sila
Intuitive Parametric Insurance Software to Support the Complicated Logistics Industry
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Otonomi & Sila:
At a Glance
A transformative software based on smart contracts that drastically improves insurance automation in logistics
CEO and co-founder of Otonomi, Yann Barbarroux, experienced something that many travelers go through—on a routine trip in Europe, his baggage was lost. However, Yann realized something in the one year of waiting to receive compensation for the lost items fom his insurance—this process can be expedited and improved!
Yann also had some previous interest in blockchain technology. When he discovered blockchain technology in 2003 with his now partner Sebastien Henot, he realized that blockchain can be applied in unique areas, even going so far as to program a smart contract to support common insurance needs.
With this idea, and inspired to do something to support the logistical and transport frustrations exacerbated by COVID, Otonomi was born. A smart contract-based insurance program, Otonomi adjudicates clients in something like 45 minutes rather than 45 days, compressing administrative costs by up to 90%.
Read about how Sila is helping this transformative technology change insurance. #PoweredbySila
Built on Sila’s powerful technology, Otonomi can tap into strong security and payments infrastructure to streamline the money movement side of things.
Sila’s access to smart contract technology enables insurance contract automation, claims automation and more.
Otonomi can always tap into Sila’s Fintech Marketplace to find additional functionality if relying on Sila’s fintech expertise should not suffice.
The Goal
An Automated Insurance Software That Can Help File Claims, Offer Dynamic Pricing, Provide Fast Compensation, and Limit Risks of Lending for Air Cargo, Ocean Marine, and Ground Transportation (Among Others)
After his own experiences with seriously delayed financial compensation in his insurance claim, Yann knew that something needed to be done to fix the lag and administrative load in the insurance industry. Not only did this industry need a speed increase, but it could also improve transparency, cost-effectiveness, and flexibility.
Yann had the great idea to add blockchain technology, in particular smart contracts, to this process to automate it. In order to get his hands on a smart contract technology that interacted well with financial disruption and legal documents necessary in the insurance industry, Yann turned to Sila.
Without Sila
- Buying or building a smart contract, which would then need to be amalgamated into an app aggregator.
- Building an app or software capable of handling smart contract technology and payment disruption technology at a low price.
- Finding a bank agent or banking partner to help them with the financial side, allowing money to be transferred with the right complaints features.
- Even with some knowledge of compliance, the need to find a partner, technology, and compliance officer that gets what Otonomi is trying to do.
- Needing to purchase features to add-on later, never really know if those features will work with the product you’re currently building.
With Sila
- Tapping into Sila’s smart contract and powerful financial technology code at an affordable rate, with integration ready-made.
- Not needing to link up with other technology, but knowing that everything can connect with Sila.
- Using Sila’s status as a bank agent, gaining secure access to bank account linking API and pass-through insurance.
- Using Sila’s compliance features, like KYC and KYB, and more to streamline this process and remain compliant year over year.
- Able to access Sila’s Fintech Marketplace to add on features any time that they are ready.
A new financial world, built by you.
Sila offers a simple, secure, and scalable banking API to make money programmable with built-in regulatory compliance.
Client friendly wallet management for B2B was better at Sila.
The Results
With Otonomi, powered by Sila, insurance carriers, reinsurers and underwriters, and 3PL and freight forwarders can access expedited claim resolution, improved loss ratios, reduced expenses, and lightning-fast payouts.
Otonomi is not just a smart contract, but it is a smarter platform. This is how it works:
- Hardware on the supply chain triggers the software when delays occur
- There are also data-activated API triggers powered by Chainlink
- Activation is then reached, allowing claims to auto-adjudicate with smart contract technology
- With a full fintech payments infrastructure, Otonomi also offers payment and payoff, so there is no manual process here
With full digital funds management, claims automation, and algorithmic underwriting now at your fingertips, the world of logistical delays, insurer issues, and claims adjudication is far more streamlined. This parametric product is improving operational efficiency in the air cargo industry, ocean marine, and ground transport. It is looking to support weather and climate issues and provide cyber insurance as well. This technology will now protect products that range from perishables to livestock, events, luxury goods, reefers, and even parts.
Otonomi is revolutionizing how parametric insurance is being created and sold.
Result 1
Otonomi is able to introduce decentralized finance (DeFi) through the Sila app. With smart contract technology that automates parametric insurance policies for clients, Otonomi sources capital through DeFi.
Result 2
The Otonomi software brings speed, transparency, and cost-effectiveness to a hindered market. With claim auto-adjudication built into smart contract technology, the claim adjudication process is extremely streamlined. Shipment delays and interruptions are protected through the parametric platform.
Result 3
The software uses secure, independent event triggers to detect supply chain disruption and trigger an automatic claim execution (via smart contract) to mitigate fraud risk. Lightning-fast payouts are available through the Sila digital wallet integration, reducing the expense ratio to >75%.
Result 4
Now with Otonomi, supply chain users can virtually guarantee risk management. The software also provides big data and algorithm underwriting to provide a loss ratio reduction of >5%. For 3PL and freight forwarders, you can now speed up the claims resolution 100x.
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