WHOLESALE INSURANCE SRL – BLOCKCHAIN

The process related to the management of surety bond policies is still poorly digitized, unable to provide efficiency parameters adequate to the volumes handled, and exposed to risks related to fraud and policy forgery.
These aspects result in a series of operational issues that affect all parties involved in the legal relationship: Guarantors, Contractors, Beneficiaries. For this reason, the Blockchain section was created in our Software and on our Website, designed to combat fraud, enable the digitization of surety bond policies, and facilitate their writing and storage on the blockchain.
Our IT Platform allows the issuance, enforcement, release, and lifecycle management of Surety Bonds through a securely native digital process.
 

It must indeed be electronically verifiable with the issuer, or managed through platforms operating with distributed ledger technologies in accordance with Article 8-ter, paragraph 1, of Decree-Law No. 135 of December 14, 2018, converted, with amendments, by Law No. 12 of February 11, 2019, in compliance with the characteristics established by AGID with the provision referred to in Article 26, paragraph 1 – effective from January 1, 2024.

The verification process is very quick and simple, consisting of only two steps:

• By scanning the QR code present on the policies, it is possible to verify the authenticity of the Surety Bond on the Polygon Blockchain through the following link:  https://polygonscan.com/
• By entering the Hash Key present on each Surety Bond issued by us.

The partner we selected, among all those consulted, is Polygon. Polygon (formerly Matic Network) is a blockchain platform that aims to create a multi-chain blockchain system compatible with Ethereum. Like Ethereum, it uses a proof-of-stake consensus mechanism for processing transactions on the chain. Polygon's native token is called MATIC. Matic is an ERC-20 token, allowing compatibility with other Ethereum cryptocurrencies. It is managed by Polygon Labs.

Our Digital Platform allows for the digitization of surety bonds by notarizing them thanks to Blockchain / DLT technology, optimizing the work of operators. In the case of Surety Bonds, the insurance company assumes the role of guarantor of the commitment made by the debtor to the creditor.

The notarization of the policy on Blockchain, following the surety bond guarantee, must be issued and digitally signed according to the new public procurement code.

The Surety Bond policy in question often proves to be more advantageous as it does not require deposits of collateral amounts as a counter-guarantee, thus simplifying the entire procurement process. This simplicity has also been maintained within our Digital Platform, which allows loading the issued surety bonds with the entry of a few simple data to proceed with the immediate notarization of the Surety Bond. The latter can subsequently be verified through the verification page.

Mission and Objectives

The platform was launched with the aim of building a platform based on Blockchain/DLT technology. The use of this technology ensures transparency and reliability in the insurance sector, optimizing performance.  

The platform was created by Wholesale Insurance Srl, over the years and saw the active participation, during the Test period, of institutional partners. Many Blockchain System Providers were evaluated, until identifying the partner that provided the greatest guarantees for our clients and the insurance companies that trusted us in our work journey.  

To date, the service offered by our "Digital Platform" has created a digital solution that, thanks to the use of Blockchain / DLT technology, allows:

• Facilitating the coordination of different market players;
• Reducing the phenomenon of fraud;
• Dematerializing the surety bond;
• Providing certified and timely information to all supply chain actors;
• Improving the management of surety bonds;
• Acquiring co-obligations digitally.