Thursday, July 21, 2016

Cash price trends: A new era for the Alliance by block chain technology – Shareholders

Cash price trends refers to the successful test run, which Allianz SE has carried out the block chain system. The subsidiary Allianz Risk Transfer AG tested this with Nephila Capital smart Contract technology block chain in the management of natural disasters swaps. Insurance companies are outsourcing the risks of a well-defined potential damage case in such disasters bonds. When exactly this insured fails to damage the bond creditors earned the bonds issued by the insurance companies. However, if this damage occurs, the creditor has paid for it. accelerated with the Smart-Contract technology block chain and the transaction and payment processes between insurers and creditors simplified significantly. In addition, the tradability of catastrophe bonds improved. With this Smart-Contract technology based on the block chain, payments are triggered automatically as soon as the pre-agreed event occurs. Because human intervention eliminated, errors can be avoided. Perspective could even switching and monitoring functions, as they are currently carried out by banks, brokers and managers, auditors and clearing houses, are taken over by the software code.

The Allianz SE redeemed last year with around 142,000 employees generated sales of well 152 billion euros. Since the premiums paid must be invested in the capital market in order to make payments in the insurance case, that Allianz is also one of the largest asset management companies in the world. Recently, the company was responsible for more than 1.24 trillion euros for themselves and their clients. The low interest rate environment resulted in new challenges for the entire insurance industry. The Alliance, however, is better placed than many competitors because the company generates almost half of operating profit with damage insurance and accident insurance. There, the group can often compensate by raised premiums low interest rates. The KGV for the current year is only about 9. In particular, the ongoing risk of low interest rates are likely to be responsible for this low rating. Should actually grow significantly in the coming years the alliance, a considerably higher valuation is justified. For growth, the digitization of the cash flows and the increasing use of the block chain for efficient transactions could contribute. The Board expects the block chain technology in the long term significantly lower costs for financial transactions and thus also a new customer base. Further evidence of Cash price trends and the expected dividend yield of 5.7 percent for the entry.

block chain system: Somewhere must be saved, how much money is available in bank accounts or other electronic booking offices; somewhere the bank must save the credit balance of the customer. Banks are indeed well prepared usually against attacks by cyber criminals or other hazards. Nevertheless, there are risks, because who controls always the lists or databases of financial institutions, also controls the balance. Criminals, or even malicious government politicians, decide a compulsory levy on savings, can gain access to the assets of the bank customers at least in theory. A system based on Block Chain (block chain) payment system can protect, as is the information about each credit is not in a central database, but decentralized to all participants of the payment system are stored. The block chain is merely a list of all transactions made ever goes to all the participants, this is public across the network and at the same anonymous. Each block contains in the form of a checksum references to the previous block and the entire block chain. This subsequent changes to the block chain are excluded. Once respect to transactions that have been confirmed by the network, can not be undone. Who still wants to manipulate, to unauthorized access to more than half of all computers participating in a network would provide. Balances in a work based on the block chain payment system are stored in a so-called Wallet, ie a (mostly electronic and software-based) “purse”. The Wallet is a combination of a public and a private key. The public key corresponding to the account number in a traditional payment system. However, the identity of an owner of a wallet must be known to anybody – that is the electronic equivalent of an anonymous numbered account. The owner of a wallet gets by its private key access to its electronic account. Any transaction that he carries out, he must sign with its private key. The private key is known only to him. Although the public key and private key mathematically form a firmly bonded pair, it is mathematically almost impossible to guess the private key solely from the general known public key.


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