Basic Risk Information Component (BRIC) and Insurance

Abstract

The objective of this article is to provide a solution for the issue of information isolation in insurance industry which has caused duplication of data entry in each segment and heavy redundant investment for recognition of risk exposures and insurance coverage. The situation has also hampered the development of InsureTech and in order to resolve the problem we propose a concept of Basic Risk Information Components (BRIC or RIC for short), as standard information building block to organize information of risk exposures and insurance coverage into a uniform format. Device RIC (DRIC) is an extension of BRIC to provide required information of insured subjects, which is then transferred to Contract RIC (CRIC) forming an insurance contract, then going through Risk Aggregation by Group RIC (GRIC) and Risk Distribution by Placement RIC (PRIC) to complete the whole insurance process. DRIC is performed by Operating System installed in IoT, similar to mobile phone OS in IoP (Internet of People). Implementation of BRIC will be a solid foundation for further innovation in new product design, improvement of operation efficiency and new business model for insurance.