System and computer-implemented method for generating, customizing, and managing blockchain-based smart insurance contracts

Abstract

Embodiments of the present invention provide a system for a system for generating, customizing, and managing blockchain-based smart insurance contracts for marine and offshore operations, the system comprises one or more user devices, one or more service provider devices and a computer system hosting a contract generation platform including a processor and a memory unit. The one or more user devices are associated with respective insurers and insured parties involved in marine and offshore operations. It is configured to input data related to specific requirements, preferences, and scenarios for insurance contracts. The one or more service provider devices are associated with respective regulatory and compliance entities. It is configured to provide regulatory requirements and compliance checks for the insurance contracts. The computer system hosting a contract generation platform is connected with the one or more user devices and the one or more service provider devices.

Description

[0001] SYSTEM AND COMPUTER-IMPLEMENTED METHOD FOR GENERATING, CUSTOMIZING, AND MANAGING BLOCKCHAIN-BASED SMART INSURANCE CONTRACTS

[0002] TECHNICAL FIELD

[0003] [1] The present invention relates generally to the field of technologies in trade transaction and, more specifically, to a system and computer-implemented method for generating, customizing, and managing blockchain-based smart insurance contracts for marine and offshore operations.

[0004] BACKGROUND OF THE INVENTION

[0005] [2] The subject matter discussed in the background section should not be assumed to be prior art merely as a result of it being mentioned in the background section. Similarly, a problem mentioned in the background section or associated with the subject matter of the background section should not be assumed to have been previously recognized in the prior art. The subject matter in the background section merely represents different approaches, which in and of themselves may also correspond to implementations of the claimed technology.

[0006] [3] The marine industry has traditionally relied on paper-based documentation and manual processes for managing contracts and transactions related to marine vessels, offshore oil rigs, and floating platforms. These processes involve the creation, exchange, and verification of various documents, such as inspection reports, delivery orders, and commercial invoices, among shipowners, charterers, operators, and regulatory authorities.

[0007] [4] However, these conventional methods are often plagued by inefficiencies, lack of transparency, and vulnerability to fraud and errors. The manual handling of physical documents increases the risk of data inaccuracies, delays, and the potential for document tampering or loss. Additionally, the lack of a centralized and secure system for managing marine-related documentation hinders the ability to track and verify the authenticity of transactions, leading to disputes and diminished trust among stakeholders.

[0008] [5] Attempts have been made to digitize and automate certain aspects of the marine documentation process. However, these solutions still face challenges in ensuring data integrity, security, and universal acceptance across different jurisdictions and regulatory environments. The conventional process suffers from several drawbacks:

[0009] [6] Vulnerability to Fraud and Errors: Manual handling and paper-based documentation are prone to human errors and fraudulent activities, such as document forgery and unauthorized alterations. [7] Inefficiencies in Processing: Manual processes are time-consuming and labor-intensive, leading to delays in transaction completion and increased operational costs.

[0010] [8] Difficulty in Compliance and Verification: Ensuring compliance with international trade laws and standards is cumbersome, and verifying the authenticity of documents across different jurisdictions adds complexity.

[0011] [9] Limited Accessibility and Scalability: Small-scale traders and businesses often find it difficult to access and manage traditional marine trade systems efficiently, limiting their ability to participate in global markets.

[0012]

[0010] Therefore, there is a need in the art to address these drawbacks by providing a system and computer-implemented method for generating, customizing, and managing blockchain-based smart insurance contracts for marine and offshore operations. Such an invention should enhance the security, efficiency, and transparency of marine trade transactions and insurances while ensuring compliance with international standards and facilitating easier participation for small and medium- sized enterprises in the global market.

[0013] SUMMARY OF THE INVENTION

[0014]

[0011] According to a first aspect of the present invention, there is provided a computer- implemented system for blockchain-enabled documentation of trade transactions. The system comprises one or more user devices, one or more service provider devices and a computer system hosting a contract generation platform including a processor and a memory unit. The one or more user devices are associated with respective insurers and insured parties involved in marine and offshore operations. It is configured to input data related to specific requirements, preferences, and scenarios for insurance contracts. The one or more service provider devices are associated with respective regulatory and compliance entities. It is configured to provide regulatory requirements and compliance checks for the insurance contracts. The computer system hosting a contract generation platform is connected with the one or more user devices and the one or more service provider devices. The computer system is configured to: receive, from the one or more user devices and the one or more service provider devices, input data related to specific requirements, preferences, and scenarios for insurance contracts on the contract generation platform; compile a dataset comprising historical insurance contract data, market trends, and regulatory requirements relevant to marine and offshore insurance; analyze the compiled dataset to suggest customized insurance contract clauses drafted according to the specific requirements and preferences of the insuree, using machine learning techniques; generate a unique set of clauses for each insurance contract, wherein each clause is associated with a unique identifier, serving as a novel identifier for the said clause, as facilitated by the contract generation platform; encode each insurance contract, along with its unique set of clauses and their respective identifiers, into a smart contract on a blockchain framework, ensuring the immutability and transparency of the contract data, a process managed by the contract generation platform; record the details of each insurance contract, including the unique identifiers for its clauses, onto the blockchain framework, along with contract creation timestamp and involved party identifiers, to enhance the security and authenticity of the insurance contracts for marine and offshore operations; and utilize the blockchain framework to provide a verifiable and permanent record-keeping system for the insurance contracts, wherein the system, through the contract generation platform, is further configured to adapt to changing regulatory requirements, ensuring ongoing compliance and enhancing the transparency, security, and compliance of the contracts.

[0015]

[0012] By an embodiment of the present invention, the machine learning techniques include at least one of supervised learning, unsupervised learning, reinforcement learning, or deep learning algorithms to analyze the dataset and suggest customized insurance contract clauses.

[0016]

[0013] In accordance with an embodiment of the present invention, further comprising a user interface on the contract generation platform that displays the suggested insurance contract clauses for review and customization by the insurers and insured parties prior to encoding on the blockchain framework.

[0017]

[0014] In accordance with an embodiment of the present invention, the unique identifier for each insurance contract clause is generated using at least one of a hash function, a timestamp, or a cryptographic signature to ensure uniqueness and security.

[0018]

[0015] In accordance with an embodiment of the present invention, further configured to notify the respective insurers and insured parties involved in marine and offshore operations of any changes in regulatory requirements that may affect their insurance contracts.

[0019]

[0016] In accordance with an embodiment of the present invention, the contract generation platform further includes an audit and compliance module configured to automatically perform compliance checks against the compiled dataset of regulatory requirements to ensure that the suggested insurance contract clauses meet current legal standards

[0020]

[0017] In accordance with an embodiment of the present invention, the memory unit further stores machine-readable instructions that, when executed by the processor, cause the computer system to automatically update insurance contract clauses in response to changes in the dataset comprising historical insurance contract data, market trends, and regulatory requirements.

[0018] In accordance with an embodiment of the present invention, the contract generation platform is further configured to support dynamic updating of the machine learning model based on feedback received from users regarding the efficacy and accuracy of the suggested insurance contract clauses.

[0021]

[0019] In accordance with an embodiment of the present invention, the blockchain framework includes a smart contract execution environment that enables automated execution of certain terms of the insurance contracts upon the occurrence of predefined conditions.

[0022]

[0020] In accordance with an embodiment of the present invention, further comprising a reporting module on the contract generation platform configured to generate reports on the status of insurance contracts, including summaries of compliance checks, contract modifications, and blockchain certificate issuances.

[0023]

[0021] In accordance with an embodiment of the present invention, the blockchain framework is integrated with an external data feed to automatically adjust insurance contract clauses based on real-time data, such as changes in maritime law, environmental regulations, or geopolitical events affecting marine and offshore operations

[0024]

[0022] According to a second aspect of the present invention, there is provided a computer- implemented method for generating, customizing, and managing blockchain-based smart insurance contracts, the method comprising steps of: receiving, from one or more user devices associated with insurers and insured parties and one or more service provider devices associated with regulatory and compliance entities, input data related to specific requirements, preferences, and scenarios for insurance contracts; compiling a dataset comprising historical insurance contract data, market trends, and regulatory requirements relevant to marine and offshore insurance; analyzing the compiled dataset to suggest customized insurance contract clauses drafted according to the specific requirements and preferences of the insuree, using machine learning techniques; generating a unique set of clauses for each insurance contract, wherein each clause is associated with a unique identifier; encoding each insurance contract, along with its unique set of clauses and their respective identifiers, into a smart contract on a blockchain framework, ensuring the immutability and transparency of the contract data; recording the details of each insurance contract, including the unique identifiers for its clauses, onto the blockchain framework, along with contract creation timestamp and involved party identifiers; utilizing the blockchain framework to provide a verifiable and permanent record-keeping system for the insurance contracts, further configured to adapt to changing regulatory requirements.

[0025]

[0023] In accordance with an embodiment of the present invention, analyzing the compiled dataset involves using at least one of supervised learning, unsupervised learning, reinforcement learning, or deep learning algorithms to suggest customized insurance contract clauses.

[0026]

[0024] In accordance with an embodiment of the present invention, the generating a unique identifier for each insurance contract clause involves using at least one of a hash function, a timestamp, or a cryptographic signature.

[0027]

[0025] In accordance with an embodiment of the present invention, the blockchain framework is selected from a group consisting of a public blockchain, a private blockchain, and a consortium blockchain, based on the required level of access control and security.

[0028]

[0026] In accordance with an embodiment of the present invention, further comprising notifying the respective insurers and insured parties involved in marine and offshore operations of any changes in regulatory requirements that may affect their insurance contracts.

[0029]

[0027] In accordance with an embodiment of the present invention, further comprising performing, via an audit and compliance module of the contract generation platform, compliance checks against the compiled dataset of regulatory requirements to ensure that the suggested insurance contract clauses meet current legal standards.

[0030]

[0028] In accordance with an embodiment of the present invention, further comprising automatically updating insurance contract clauses in response to changes in the dataset comprising historical insurance contract data, market trends, and regulatory requirements.

[0031]

[0029] In accordance with an embodiment of the present invention, further comprising supporting dynamic updating of the machine learning model based on feedback received from users regarding the efficacy and accuracy of the suggested insurance contract clauses.

[0032]

[0030] In accordance with an embodiment of the present invention, the blockchain framework includes a smart contract execution environment that enables automated execution of certain terms of the insurance contracts upon the occurrence of predefined conditions.

[0033]

[0031] In accordance with an embodiment of the present invention, the one or more service provider devices include devices operated by government regulatory agencies, industry compliance organizations, or legal entities providing real-time updates on regulatory changes and compliance guidelines.

[0034]

[0032] In accordance with an embodiment of the present invention, further comprising generating reports on the status of insurance contracts, including summaries of compliance checks, contract modifications, and blockchain certificate issuances, via a reporting module on the contract generation platform.

[0035]

[0033] In accordance with an embodiment of the present invention, further comprising integrating the blockchain framework with an external data feed to automatically adjust insurance contract clauses based on real-time data, such as changes in maritime law, environmental regulations, or geopolitical events affecting marine and offshore operations.

[0036] BRIEF DESCRIPTION OF THE DRAWINGS

[0037]

[0034] So that the manner in which the above recited features of the present invention can be understood in detail, a more particular description of the invention, briefly summarized above, may have been referred by embodiments, some of which are illustrated in the appended drawings. It is to be noted, however, that the appended drawings illustrate only typical embodiments of this invention and are therefore not to be considered limiting of its scope, for the invention may admit to other equally effective embodiments.

[0038]

[0035] These and other features, benefits, and advantages of the present invention will become apparent by reference to the following text figure, with like reference numbers referring to like structures across the views, wherein:

[0039]

[0036] Figure 1 illustrates a system for generating, customizing, and managing blockchain -based smart insurance contracts for marine and offshore operations, in accordance with an embodiment of the present invention;

[0040]

[0037] Figure 2 illustrates a computer implemented method for generating, customizing, and managing blockchain-based smart insurance contracts for marine and offshore operations, in accordance with an embodiment of the present invention; and

[0041]

[0038] Figures 3A-3B illustrate information flow diagrams showcasing an exemplary implementation of the system and method of Figs. 1 and 2, in accordance with an embodiment of the present invention.

[0042] DETAILED DESCRIPTION OF THE DRAWINGS

[0043]

[0039] While the present invention is described herein by way of example using embodiments and illustrative drawings, those skilled in the art will recognize that the invention is not limited to the embodiments of drawing or drawings described and is not intended to represent the scale of the various components. Further, some components that may form a part of the invention may not be illustrated in certain figures, for ease of illustration, and such omissions do not limit the embodiments outlined in any way. It should be understood that the drawings and detailed description thereto are not intended to limit the invention to the particular form disclosed. Still, on the contrary, the invention is to cover all modifications, equivalents, and alternatives falling within the scope of the present invention as defined by the appended claims. As used throughout this description, the word "may" is used in a permissive sense (i.e., meaning having the potential to), rather than the mandatory sense, (i.e., meaning must). Further, the words "a" or "an" mean "at least one” and the word “plurality” means “one or more” unless otherwise mentioned. Furthermore, the terminology and phraseology used herein are solely used for descriptive purposes and should not be construed as limiting in scope. Language such as "including," "comprising," "having," "containing," or "involving," and variations thereof, is intended to be broad and encompass the subject matter listed after that, equivalents, and additional subject matter not recited, and is not intended to exclude other additives, components, integers or steps. Likewise, the term "comprising" is considered synonymous with the terms "including" or "containing" for applicable legal purposes. Any discussion of documents, acts, materials, devices, articles, and the like is included in the specification solely to provide a context for the present invention. It is not suggested or represented that any or all of these matters form part of the prior art base or were common general knowledge in the field relevant to the present invention.

[0044]

[0040] In this disclosure, whenever a composition or an element or a group of elements is preceded with the transitional phrase “comprising”, it is understood that we also contemplate the same composition, element, or group of elements with transitional phrases “consisting of’, “consisting”, “selected from the group of consisting of, “including”, or “is” preceding the recitation of the composition, element or group of elements and vice versa.

[0045]

[0041] The present invention is described hereinafter by various embodiments with reference to the accompanying drawing, wherein reference numerals used in the accompanying drawing correspond to the like elements throughout the description. This invention may, however, be embodied in many different forms and should not be construed as limited to the embodiment set forth herein. Rather, the embodiment is provided so that this disclosure will be thorough and complete and will fully convey the scope of the invention to those skilled in the art. In the following detailed description, numeric values and ranges are provided for various aspects of the implementations described. These values and ranges are to be treated as examples only and are not intended to limit the scope of the claims.

[0046]

[0042] Referring to the drawings, the invention will now be described in more detail. Figure 1 illustrates a system for generating, customizing, and managing blockchain-based smart insurance contracts for marine and offshore operations, in accordance with an embodiment of the present invention. As shown in figure 1, the system 100 comprises, but not limited to, one or more user devices 104 associated with respective users; one or more service provider devices 106 associated with respective service providers; a blockchain framework 108; and a computer system 102 hosting a contract generation platform, connected with the one or more user devices 104, the one or more service provider devices 106, the and the blockchain framework 108, via a communication network 110.

[0047]

[0043] Returning to figure 1, The depicted embodiment includes various hardware components that are integral to the system 100 operation, each with distinct capabilities and connections to other components within the system 100. Each component will now be discussed in detail below:

[0048]

[0044] As can be seen from the figure 1, the brain of the system 100 is the computer system 102. In that sense, the computer system 102 may be envisioned as the central processing unit of the system 100. It comprises a processing module 1024 and a memory unit 1022. The processing module 1024 is a critical component that executes machine-readable instructions stored within the memory unit 1022. The processing module 1024 may be one of, but not limited to, a general- purpose processing module 1024, an application- specific integrated circuit (ASIC), or a field- programmable gate array (FPGA).

[0049]

[0045] The memory unit 1022 of the computer system 102 is configured to store machine -readable instructions that, when executed by the processing module 1024, enable the computer system 102 to perform a multitude of functions relevant for blockchain-enabled documentation of trade transactions and / or automating the generation and execution of digital smart contracts. The memory unit 1022 can be selected from a group comprising, but not limited to, Electrically Programmable Read-Only Memory (EPROM), Electrically Erasable Programmable Read-Only Memory (EEPROM), and Flash memory. The memory unit 1022 can be loaded with machine- readable instructions from a non-transitory machine-readable medium, such as, but not limited to, CD-ROMs, DVD-ROMs, and Flash Drives. Alternatively, the machine-readable instructions can be loaded in the form of a computer software program into the memory unit 1022.

[0050]

[0046] The computer system 102 may also include a communication module (not shown) specifically designed to enable wireless connections with the one or more user devices 104, and the one or more service provider devices 106 over the communication network 110. The communication module is pivotal in facilitating seamless wireless communication within the system 100, ensuring that data transfer and interactions between these components are efficient and secure. The wireless capabilities of the communication module extend to its integration with the one or more user devices 104, the one or more service provider devices 106, and the blockchain framework 108, essential for the real-time data processing and secure data handling required by the system 100. The module supports various wireless communication protocols, such as Wi-Fi, Bluetooth, and NFC (Near Field Communication), allowing for flexible and robust connectivity options. These protocols enable the computer system 102 to maintain continuous and reliable wireless connections, which are vital for the dynamic updating and real-time data processing functionalities of the system 100.

[0051]

[0047] In that sense, the communication network 110 can be a short-range communication network 110 and / or a long-range communication network 110. The communication interface includes, but is not limited to, a serial communication interface, a parallel communication interface, or a combination thereof. The communication network 110 enables the seamless transfer of data and instructions between the components of the system 100. It may utilize various communication protocols and technologies, including, but not limited to, the Internet, intranets, virtual private networks (VPNs), and cloud-based services, ensuring that the system 100 remains connected and responsive to the needs of the users.

[0052]

[0048] Figure 1 also illustrates the blockchain framework 108 associated with the computer system 102. This invention employs a blockchain framework 108 as a fundamental component of the system 100 for automating the generation and execution of digital smart contracts in marine insurance transactions during transportation or trade.

[0053]

[0049] The blockchain framework 108 is selected for its inherent properties, which address several limitations of traditional and prior art transaction systems. Once transaction data, is recorded on the blockchain, it cannot be altered. This immutability ensures the integrity and trustworthiness of the transaction records, safeguarding against fraudulent activities and unauthorized modifications. All transaction records on the blockchain are transparent and accessible to authorized participants. This transparency facilitates easy tracking and verification of transaction stages, enhancing trust among all stakeholders involved in the marine insurance.

[0054]

[0050] The blockchain framework 108 employs advanced cryptographic techniques to secure data, ensuring that transaction records and digital smart contracts are protected from unauthorized access and breaches.

[0055]

[0051] Unlike traditional centralized systems, the blockchain operates on a decentralized network, distributing the transaction data across multiple nodes. This decentralization enhances the resilience of the system 100 against single points of failure and potential data manipulation. The blockchain framework 108 is designed for high performance, enabling quick processing and recording of transactions. This efficiency is crucial in fast-paced trade environments where timely execution of contracts and verification of documents are essential. The platform supports the creation and execution of digital smart contracts, automating various aspects of marine trade transactions, such as contract formation, compliance checks, and execution of terms.

[0056]

[0052] Recognizing the diverse nature of global marine trade, the blockchain framework 108 is built with interoperability in mind, allowing seamless integration with various external systems and technologies. The platform can be customized to suit the specific requirements of different marine trade transactions, accommodating various types of commodities, trade laws, and business practices. The blockchain framework 108 includes user-friendly interfaces for both buyers and service providers, simplifying interactions with the system 100 and ensuring ease of use even for participants with limited technical expertise. The platform is designed to comply with international trade laws and standards, ensuring that transactions executed through the system 100 are legally sound and globally accepted.

[0057]

[0053] Additionally, the one or more user devices 104 and the one or more service provider devices 106 as shown in figure 1, play a pivotal role in the present invention. These devices may encompass a range of computing devices, including, but not limited to, desktop PCs, laptops, PDAs, and handheld computing devices such as smartphones and tablets. Each device is equipped with micro-processing modules that facilitate processing and communication capabilities, enabling them to interface seamlessly with the computer system 102 through both wired and wireless connections. In certain embodiments of the invention, these buyer devices 104 and service provider devices 106 are more than mere conduits for data input and output; they may themselves house the processing module 1024 along with their inherent functionalities. This embodiment allows for a versatile application of the invention, where the processing power is not confined to a central computer system 102 but distributed across various buyer devices 104 and service provider devices 106.

[0058]

[0054] In accordance with an embodiment of the present invention, the one or more user devices 104 and the one or more service provider devices 106 are registered with the system 100, which is crucial for ensuring secure and personalized user interaction. During the registration process, the one or more user devices 104 and one or more service provider devices 106 capture and submit essential details to the computer system 102. The information may range from basic identification data, such as usernames and contact numbers, to more specific details like areas of interest, business information, and product specifications.

[0059]

[0055] In some embodiment, in order to enhance the security and integrity of the system 100, the registration process may also incorporate biometric authentication methods. These methods could include, but are not limited to, fingerprint recognition, face recognition, and iris recognition, ensuring that access to the system 100 is restricted to authorized users only.

[0060]

[0056] The approach of integrating the registration and data management functionalities directly into the one or more user devices 104 and service provider devices 106 offers several advantages. It streamlines the user experience by allowing for immediate and secure registration and authentication, which is essential in a system handling sensitive contractual and operational data. Furthermore, by decentralizing these functions, the system 100 enhances its resilience and efficiency, as each device becomes a self-sufficient node capable of managing its own security and data interactions with the computer system 102.

[0061]

[0057] In accordance with an additional or alternative embodiment of the present invention, the computer system 102 may be configured in a remotely distributed system. This embodiment contemplates various arrangements for processing and data handling. For instance, the processing tasks traditionally assigned to the central computer system 102 could be performed on a remote server, effectively leveraging cloud computing technologies. The arrangement offers the flexibility of scalable computing resources and enables efficient handling of large data sets, which is particularly beneficial for the complex algorithms of the present invention.

[0062]

[0058] Alternatively, the processing could be decentralized and carried out on the processing modules within the one or more user devices 104 or service provider devices 106. This distributed processing approach allows for a more resilient system architecture, reducing reliance on a single processing point and potentially enhancing the speed and responsiveness of the blockchain- enabled documentation process.

[0063]

[0059] Figure 2 illustrates method 200 for blockchain-enabled documentation of trade transactions, in accordance with an embodiment of the present invention. However, the computer- implemented method 200 would be better understood in reference of figure 3A-3B, side by side. Figure 3A-3B illustrate information flow diagrams showcasing an exemplary implementation of the system 100 and method of Fig. 1 and 2, in accordance with an embodiment of the present invention. This will provide a clearer understanding of the operational intricacies and the innovative aspects of the present invention.

[0064]

[0060] So, the computer implemented as shown in figure 2, includes:

[0065]

[0061] Step 202 (receive input data from one or more user devices and service provider devices):

[0066]

[0062] The computer-implemented method begins at step 202, where the computer system first receives input data related to specific requirements, preferences, and scenarios for insurance contracts from user devices associated with insurers and insured parties, and service provider devices associated with regulatory and compliance entities. These devices are used by their respective users to provide detailed contract specifications and regulatory data essential for contract creation and compliance checking.

[0067]

[0063] The computer system is equipped with a network interface that allows it to communicate with various devices over a network. This could be an internet connection, a local network, or any other digital communication means. The user devices, which are associated with the insurers and insured parties in the insurance transactions, use this network connection to transmit the required data to the computer system. This data may include digitized versions of insurance requirements and preferences, which may bear the digital or electronic signatures of the parties, serving as a verification of their commitment to the terms of the insurance contracts.

[0068]

[0064] The service provider devices, associated with regulatory and compliance entities, send regulatory requirements and compliance data to the computer system. This data includes details about the regulatory standards and compliance norms that need to be adhered to in drafting the insurance contracts. Upon receiving the data, the processing module of the computer system may use pre-programmed instructions, stored on a memory unit, to verify the authenticity and completeness of the data. This step is crucial to ensure that only valid and complete contract drafts proceed.

[0069]

[0065] Step 204 (compile a dataset comprising historical insurance contract data, market trends, and regulatory requirements}: At step 204, the computer-implemented method involves compiling a dataset for each insurance contract transaction. This compilation involves organizing the received data in a structured manner that corresponds with the specific insurance contract needs and regulatory frameworks, as illustrated in Figure 3A.

[0070]

[0066] Step 206 (analyze the dataset to suggest customized insurance contract clauses using machine learning techniques '. Proceeding to step 206, the computer- implemented method utilizes the processing module to analyze the compiled dataset using machine learning techniques. These techniques might include supervised or unsupervised algorithms that assess the data to suggest the most appropriate clauses for the specific insurance contracts. The analysis is visualized in Figure 3A.

[0071]

[0067] Step 208 (generate a unique set of clauses for each insurance contract, each associated with a unique identifier}: At step 208, as shown in figure 3B, the processing module is configured to generate a unique set of clauses for each insurance contract. Each clause is associated with a unique identifier, which serves as a novel identifier for that clause. This process ensures that each clause is uniquely traceable and can be independently verified.

[0068] Step 210 (encode the insurance contracts into smart contracts on the blockchain framework')-. Then, at Step 210, as depicted in Figure 3B, the insurance contracts, along with their unique set of clauses and their respective identifiers, are encoded into smart contracts on a blockchain framework. This encoding step ensures the immutability and transparency of the contract data.

[0072]

[0069] Step 212 (record the details of each insurance contract on the blockchain framework) : Following encoding, at step 212, the details of each insurance contract, including the unique identifiers for its clauses, are recorded onto the blockchain framework, along with the contract creation timestamp and involved party identifiers. This step further ensures the security and authenticity of the insurance contracts.

[0073]

[0070] Step 214 (utilize the blockchain framework to provide a verifiable and permanent recordkeeping system j.-Finally, at step 214, the system utilizes the blockchain framework to provide a verifiable and permanent record-keeping system. This system ensures the immutability of records through the blockchain's inherent properties, thereby enhancing the security and authenticity of the insurance contracts.

[0074]

[0071] This use of blockchain technology means that once a transaction record, such as an IRC or CIC, along with its event type and timestamp, is entered into the blockchain, it cannot be altered or tampered with. The immutability of the blockchain ledger ensures that all transaction records are secure and authentic. It provides a trustworthy source of truth that can be referred to by all parties involved in the trade transaction. This characteristic is especially important in the marine trade sector, where the authenticity of documents like inspection reports and commercial invoices is crucial.

[0075]

[0072] The blockchain system offers a transparent way to verify the authenticity and completion of transactions. All parties involved in the transaction can access the blockchain ledger to confirm the details and status of the transactions. This transparency is beneficial in building trust among all parties, reducing disputes, and streamlining the overall trade process. The step 214 represents the culmination of the transaction process in a blockchain environment, where the system 100 records transaction details. This step solidifies the blockchain framework’s 108 role in enhancing the security, transparency, and efficiency of the marine trade documentation process.

[0076] Working Example:

[0077]

[0073] To demonstrate the best mode of operation for the present method involving a computer- implemented system for generating and managing blockchain-based smart insurance contracts, let's consider a hypothetical real-life example involving an offshore oil rig operator, "Oceanic Energy," located in Houston, Texas:

[0078]

[0074] Example Scenario: Suppose Oceanic Energy needs to secure a complex insurance policy for a new offshore rig, "Deepwater Pioneer," intended for deployment in the North Sea. They are dealing with an insurance company, "Marine Assure Ltd.," based in London, England.

[0079] Step 1 : Input Data Initiation

[0080]

[0075] Oceanic Energy uses a user device to upload rig specifications and risk assessments. Concurrently, Marine Assure Ltd. sends regulatory requirements and compliance data from a service provider device. This data flow is represented in FIG. 3A, where input data related to specific requirements, preferences, and scenarios for insurance contracts are processed by the computer system (104 and 106 interacting with 102).

[0081] Steps 2: Receiving Regulatory Requirements and Compliance Checks

[0082]

[0076] Alongside the input data, Marine Assure Ltd. provides detailed regulatory requirements and compliance checks needed for insurance contracts specific to offshore rig operations. These requirements are crucial for ensuring that the insurance policies comply with both local and international maritime regulations.

[0083] Steps 3: Compiling Data

[0084]

[0077] The processing module in Oceanic Energy’s computer system compiles these documents and data (risk assessments, rig specifications, regulatory requirements, and compliance checks). Example: Each document is associated with metadata such as document type and timestamp. Example: DOC_RISK_ASSESSMENT - 01 - DS - 20 / 03 / 2024 10:15

[0085] Steps 4: Analyzing Data

[0086]

[0078] The system analyzes the compiled dataset using machine learning techniques to suggest customized insurance contract clauses that specifically cover the unique risks associated with offshore operations in the North Sea, taking into account the regulatory and compliance requirements.

[0087] Step 4: Generating Unique Clauses

[0088]

[0079] Unique insurance contract clauses are generated for "Deepwater Pioneer," each tagged with a unique identifier, ensuring specific coverage terms tailored to the rig’s operational and environmental risks and compliance standards.

[0089] Step 6: Encoding on Blockchain

[0090]

[0080] These clauses, along with their unique identifiers, are encoded into a smart contract on a blockchain framework like Ethereum. This step ensures the immutability and transparency of the contract details.

[0091] Step 7: Recording Details on Blockchain

[0092]

[0081] The details of the insurance contract, including the unique identifiers for its clauses, contract creation timestamp, and involved party identifiers, are recorded on the blockchain framework. This ensures enhanced security and authenticity of the contract. Step 6: Generating Blockchain Certificates

[0093] Real-Life Application:

[0094]

[0082] In this scenario, Oceanic Energy benefits from an insurance policy that is highly tailored and responsive to the specific needs and risks of the Deepwater Pioneer. The blockchain system ensures that all clauses are immutable and transparently managed.

[0095]

[0083] Marine Assure Ltd. can efficiently manage and adjust the insurance policy, as all clauses and amendments are recorded on the blockchain, reducing the risk of disputes and enhancing trust in the insurance relationship. Both parties have access to a transparent record of the contract, fostering a strong, compliant insurance partnership.

[0096]

[0084] Additional Benefits:

[0097]

[0085] Furthermore, the invention can be used to facilitate real-time updates and compliance checks by integrating live data feeds from the operational environment of Deepwater Pioneer into the blockchain system. This feature allows for dynamic adjustment of insurance terms based on actual operational conditions and risks, significantly enhancing the responsiveness and effectiveness of the insurance coverage.

[0098]

[0086] This system could also enable third-party auditors and regulatory bodies to verify the compliance and integrity of the insurance contract without the need for physical document exchanges, streamlining regulatory audits and compliance verifications.

[0099]

[0087] The present invention, a computer-implemented system for automating the generation and execution of digital smart contracts for marine trade transactions using blockchain technology, offers several advantages over prior art in the field of trade transaction processing and documentation.

[0100]

[0088] Additionally, the method may allow the insurance companies to provide a new service of insurance in general and for Marine Companies, Offshore Companies, Shipowners Companies, Oil & Gas Companies specifically to:

[0101] 1. Insurance companies may provide insurance products and services to cover the termination or cancellation of contracts under the “Force Majeure” termination / cancellation clause.

[0102] 2. Insurance companies may provide insurance products and services to cover the termination or cancellation of contracts under the “Emiri Decisions / Prince’ s Decisions.” termination / cancellation clause.

[0103] 3. Insurance companies may provide insurance products and services to cover the termination or cancellation of contracts under the “Failure of the charterers to implement / execute the contract.” termination / cancellation clause.

[0104] 4. Insurance companies may provide insurance products and services to cover the termination or cancellation of contracts under the “without giving or explaining the reasons.” termination / cancellation clause (Termination for convenience).

[0105] 5. Insurance companies may provide insurance products and services to cover the termination or cancellation of contracts under the “for specific reasons or reasons.” termination / cancellation clause.

[0106] 6. Insurance companies may provide insurance products and services to cover the termination or cancellation of contracts under the “due to the charterers’ s desire to terminate the contract, and sometimes it is called early termination / cancellation of the contract or contracts.

[0107] 7. Termination the contract, freezing the contract, or suspension the contract or the work, all shall be read in the same understanding.

[0108]

[0089] Worth to highlight that these new services or new products that the Insurance Companies may provide shall be solving a serious challenge for the contracted parties. It may aim to provide an insurance for the contract’s value to protect the contract itself and the investor and to make a reasonable risk measurement for the contracted parties.

[0109]

[0090] Here are some of the key benefits of the computer-implemented method for generating, customizing, and managing blockchain-based smart insurance contracts for marine and offshore operations:

[0091] Enhanced Security and Immutability:

[0110]

[0092] The adoption of blockchain technology ensures the immutability of all insurance contract records. Once a contract is encoded and stored on the blockchain, it cannot be altered or tampered with, significantly reducing the risk of fraud and enhancing the security of sensitive insurance data compared to traditional record-keeping systems.

[0111]

[0093] Increased Transparency and Trust:

[0112]

[0094] Every insurance contract and its amendments are transparent and traceable. All parties involved, including insurers, insured parties, and regulatory bodies, can access and verify contract details on the blockchain, fostering increased trust and openness in the insurance process.

[0113]

[0095] Streamlined Documentation Process:

[0114]

[0096] The system automates the compilation, analysis, and encoding of insurance contract clauses, drastically reducing the time and effort typically required in manual processing. This efficiency is particularly beneficial for complex insurance arrangements like those needed for marine and offshore operations, where multiple stakeholders and compliance with diverse regulations are involved.

[0115]

[0097] Reduced Risk of Disputes:

[0116]

[0098] With each contract clause and change clearly recorded and verifiable on the blockchain, the likelihood of disputes over the terms of the insurance or the compliance with regulatory standards is greatly reduced, as all information is transparent and immutable.

[0117]

[0099] Compliance with International and Local Regulations:

[0118]

[0100] The system is designed to ensure that all insurance contracts comply with applicable local and international maritime insurance laws. This is crucial for offshore operations that need to navigate complex legal and regulatory environments across different jurisdictions.

[0119]

[0101] Improved Accessibility and User Experience:

[0120]

[0102] The user interfaces on user devices allow for easy input, review, and modification of insurance requirements and preferences, making the system more accessible and user-friendly for insurers and insured parties alike.

[0121]

[0103] Cost- Effectiveness:

[0122]

[0104] By reducing the reliance on extensive paperwork and manual administration, the system can lower the costs associated with managing insurance contracts. This is especially significant in the marine and offshore sectors where the scale and value of assets and operations can lead to high insurance management costs.

[0123]

[0105] Real-Time Processing and Adaptation:

[0124]

[0106] The system allows for real-time processing of input data and immediate updating of insurance clauses in response to changing circumstances or new regulatory requirements. This enables dynamic adaptation of insurance policies, providing up-to-date coverage that matches the current risk landscape.

[0125]

[0107] Therefore, compared to traditional methods, the present invention offers a more secure, transparent, efficient, and adaptable approach to managing insurance contracts for marine and offshore operations. By leveraging blockchain technology and advanced computational techniques, it addresses many of the challenges associated with traditional insurance contract management, particularly in sectors that operate under high risk and require stringent compliance with diverse regulations. This innovation is significantly beneficial in the context of global marine activities, where the complexity and value of operations demand robust, reliable, and efficient systems to ensure the integrity and adequacy of insurance coverage.

[0126]

[0108] In general, the word “module,” as used herein, refers to logic embodied in hardware or firmware, or to a collection of software instructions, written in a programming language, such as, for example, Java, C, or assembly. One or more software instructions in the modules may be embedded in firmware, such as an EPROM. It will be appreciated that modules may comprised connected logic units, such as gates and flip-flops, and may comprise programmable units, such as programmable gate arrays or processing modules. The modules described herein may be implemented as either software and / or hardware modules and may be stored in any type of computer-readable medium or other computer storage device.

[0127]

[0109] Further, while one or more operations have been described as being performed by or otherwise related to certain modules, devices or entities, the operations may be performed by or otherwise related to any module, device or entity. As such, any function or operation that has been described as being performed by a module could alternatively be performed by a different server, by the cloud computing platform, or a combination thereof. It is implied that the techniques of the present disclosure might be implemented using a variety of technologies. For example, the methods described herein may be implemented by a series of computer executable instructions residing on a suitable computer readable medium. Suitable computer readable media may include volatile (e.g., RAM) and / or non-volatile (e.g., ROM, disk) memory, carrier waves and transmission media. Exemplary carrier waves may take the form of electrical, electromagnetic or optical signals conveying digital data steams along a local network or a publicly accessible network such as the Internet.

[0128]

[0110] Further, the operations need not be performed in the disclosed order, although in some examples, an order may be preferred. Also, not all functions need to be performed to achieve the desired advantages of the disclosed system and method, and therefore not all functions are required.

[0129]

[0111] The terms and descriptions used herein are set forth by way of illustration only and are not meant as limitations. Examples and limitations disclosed herein are intended to be not limiting in any manner, and modifications may be made without departing from the spirit of the present disclosure. Those skilled in the art will recognize that many variations are possible within the spirit and scope of the disclosure, and their equivalents, in which all terms are to be understood in their broadest possible sense unless otherwise indicated.

[0130]

[0112] Various modifications to these embodiments are apparent to those skilled in the art from the description and the accompanying drawings. The principles associated with the various embodiments described herein may be applied to other embodiments. Therefore, the description is not intended to be limited to the embodiments shown along with the accompanying drawings but is to be providing broadest scope of consistent with the principles and the novel and inventive features disclosed or suggested herein. Accordingly, the invention is anticipated to hold on to all other such alternatives, modifications, and variations that fall within the scope of the present invention and the appended claims.

Claims

CLAIMS:

1. A system for generating, customizing, and managing blockchain -based smart insurance contracts, the system comprising: one or more user devices, associated with respective insurers and insured parties involved in marine and offshore operations, configured to input data related to specific requirements, preferences, and scenarios for insurance contracts; one or more service provider devices, associated with respective regulatory and compliance entities, configured to provide regulatory requirements and compliance checks for the insurance contracts; a computer system hosting a contract generation platform, connected with the one or more user devices and the one or more service provider devices, the computer system including: a processor, and a memory unit configured to store machine-readable instructions that, when executed by the processor, cause the computer system to: receive, from the one or more user devices and the one or more service provider devices, input data related to specific requirements, preferences, and scenarios for insurance contracts on the contract generation platform; compile a dataset comprising historical insurance contract data, market trends, and regulatory requirements relevant to marine and offshore insurance; analyze the compiled dataset to suggest customized insurance contract clauses drafted according to the specific requirements and preferences of the insuree, using machine learning techniques; generate a unique set of clauses for each insurance contract, wherein each clause is associated with a unique identifier, serving as a novel identifier for the said clause, as facilitated by the contract generation platform; encode each insurance contract, along with its unique set of clauses and their respective identifiers, into a smart contract on a blockchain framework, ensuring the immutability and transparency of the contract data, a process managed by the contract generation platform;record the details of each insurance contract, including the unique identifiers for its clauses, onto the blockchain framework, along with contract creation timestamp and involved party identifiers, to enhance the security and authenticity of the insurance contracts for marine and offshore operations; utilize the blockchain framework to provide a verifiable and permanent recordkeeping system for the insurance contracts, wherein the system, through the contract generation platform, is further configured to adapt to changing regulatory requirements, ensuring ongoing compliance and enhancing the transparency, security, and compliance of the contracts.

2. The system as claimed in claim 1, wherein the machine learning techniques include at least one of supervised learning, unsupervised learning, reinforcement learning, or deep learning algorithms to analyze the dataset and suggest customized insurance contract clauses.

3. The system as claimed in claim 1, further comprising a user interface on the contract generation platform that displays the suggested insurance contract clauses for review and customization by the insurers and insured parties prior to encoding on the blockchain framework.

4. The system as claimed in claim 1 wherein the unique identifier for each insurance contract clause is generated using at least one of a hash function, a timestamp, or a cryptographic signature to ensure uniqueness and security.

5. The system as claimed in claim 1, the blockchain framework is selected from a group consisting of a public blockchain, a private blockchain, and a consortium blockchain, depending on the required level of access control and security.

6. The system as claimed in claim 1, further configured to notify the respective insurers and insured parties involved in marine and offshore operations of any changes in regulatory requirements that may affect their insurance contracts.

7. The system as claimed in claim 1, wherein the contract generation platform further includes an audit and compliance module configured to automatically perform compliance checks against the compiled dataset of regulatory requirements to ensure that the suggested insurance contract clauses meet current legal standards.

8. The system as claimed in claim 1, wherein the memory unit further stores machine -readable instructions that, when executed by the processor, cause the computer system toautomatically update insurance contract clauses in response to changes in the dataset comprising historical insurance contract data, market trends, and regulatory requirements.

9. The system as claimed in claim 1, wherein the contract generation platform is further configured to support dynamic updating of the machine learning model based on feedback received from users regarding the efficacy and accuracy of the suggested insurance contract clauses.

10. The system as claimed in claim 1, wherein the blockchain framework includes a smart contract execution environment that enables automated execution of certain terms of the insurance contracts upon the occurrence of predefined conditions.

11. The system as claimed in claim 1, further comprising a reporting module on the contract generation platform configured to generate reports on the status of insurance contracts, including summaries of compliance checks, contract modifications, and blockchain certificate issuances.

12. The system as claimed in claim 1, wherein the blockchain framework is integrated with an external data feed to automatically adjust insurance contract clauses based on real-time data, such as changes in maritime law, environmental regulations, or geopolitical events affecting marine and offshore operations.

13. A computer-implemented method for generating, customizing, and managing blockchainbased smart insurance contracts, the method comprising steps of: receiving, from one or more user devices associated with insurers and insured parties and one or more service provider devices associated with regulatory and compliance entities, input data related to specific requirements, preferences, and scenarios for insurance contracts; compiling a dataset comprising historical insurance contract data, market trends, and regulatory requirements relevant to marine and offshore insurance; analyzing the compiled dataset to suggest customized insurance contract clauses drafted according to the specific requirements and preferences of the insuree, using machine learning techniques; generating a unique set of clauses for each insurance contract, wherein each clause is associated with a unique identifier;encoding each insurance contract, along with its unique set of clauses and their respective identifiers, into a smart contract on a blockchain framework, ensuring the immutability and transparency of the contract data; recording the details of each insurance contract, including the unique identifiers for its clauses, onto the blockchain framework, along with contract creation timestamp and involved party identifiers; utilizing the blockchain framework to provide a verifiable and permanent recordkeeping system for the insurance contracts, further configured to adapt to changing regulatory requirements.

14. The method as claimed in claim 13, wherein analyzing the compiled dataset involves using at least one of supervised learning, unsupervised learning, reinforcement learning, or deep learning algorithms to suggest customized insurance contract clauses.

15. The method as claimed in claim 13, further comprising displaying, on a user interface of the contract generation platform, the suggested insurance contract clauses for review and customization by the insurers and insured parties prior to encoding on the blockchain framework.

16. The method as claimed in claim 13, wherein generating a unique identifier for each insurance contract clause involves using at least one of a hash function, a timestamp, or a cryptographic signature.

17. The method as claimed in claim 13, wherein the blockchain framework is selected from a group consisting of a public blockchain, a private blockchain, and a consortium blockchain, based on the required level of access control and security.

18. The method as claimed in claim 13, further comprising notifying the respective insurers and insured parties involved in marine and offshore operations of any changes in regulatory requirements that may affect their insurance contracts.

19. The method as claimed in claim 13, further comprising performing, via an audit and compliance module of the contract generation platform, compliance checks against the compiled dataset of regulatory requirements to ensure that the suggested insurance contract clauses meet current legal standards.

20. The method as claimed in claim 13, further comprising automatically updating insurance contract clauses in response to changes in the dataset comprising historical insurance contract data, market trends, and regulatory requirements.

21. The method as claimed in claim 13, further comprising supporting dynamic updating of the machine learning model based on feedback received from users regarding the efficacy and accuracy of the suggested insurance contract clauses.

22. The method as claimed in claim 13, wherein the blockchain framework includes a smart contract execution environment that enables automated execution of certain terms of the insurance contracts upon the occurrence of predefined conditions.

23. The method as claimed in claim 13 , wherein the one or more service provider devices include devices operated by government regulatory agencies, industry compliance organizations, or legal entities providing real-time updates on regulatory changes and compliance guidelines.

24. The method as claimed in claim 13, further comprising generating reports on the status of insurance contracts, including summaries of compliance checks, contract modifications, and blockchain certificate issuances, via a reporting module on the contract generation platform.

25. The method as claimed in claim 13 , further comprising integrating the blockchain framework with an external data feed to automatically adjust insurance contract clauses based on realtime data, such as changes in maritime law, environmental regulations, or geopolitical events affecting marine and offshore operations.

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