British law firm Clyde & Co has rolled an off the shelf connected parametric insurance contract for use by insurers.
A connected contract is a digital agreement which links external software systems and data sources to enable the automatic execution of insurance contracts.
The new contract can be used by the insurer only through the law firm’s smart contract consultancy, Clyde Code.
The connected parametric insurance contract has been developed in partnership with smart legal contracts platform Clause.
It is based on the specifications developed by the Accord Project, which defines technical specifications code such as data schemas, models and templates.
Lee Bacon, partner at Clyde & Co and co-founder of Clyde Code, said: “Connected contracting will bring many benefits to our clients and we are looking forward to expanding the scope of this product to cover different types of insurance and reinsurance agreements to meet client demand.
“Its launch is an exciting new step for Clyde Code and our work to help clients realise the potential of smart contracts.”
The contract comprises a data model, a logic code and a supporting natural language contract.
Initially, the contract will cover the insurance of a solar energy producer against the risk of a shortfall in expected energy generation due to unfavourable weather.
However, Clyde & Co intends to use the model to build other bespoke contracts for clients.
Clyde Code, which was launched in September 2017, is a hybrid technical-legal consultancy advising insurers on every aspect of smart contracts, blockchain and tokens.