Glossary

Smart-contract wallets (ERC-4337): passkey login, recovery, sponsored gas — app-grade UX without seed phrases.

High-risk customers disproportionately seeking cover — countered by underwriting questions and evidence.

Anti-money-laundering and know-your-customer duties: verify identity, screen sanctions/PEP, monitor and report.

Every business event appended to a tamper-evident ordered log; databases become rebuildable projections. Galileo's core design.

Parametric gap: index-triggered payout ≠ actual loss (paid without loss, or loss without payout).

Byzantine-fault-tolerant voting among known validators; tolerates ⅓ faulty. Instant finality — the consortium default.

A batch of transactions plus a header holding the previous block's hash — the link that welds history.

The periodic data report ceding companies send reinsurers — the reconciliation grind ledgers target.

Central-bank digital currency — sovereign money in token form (e-CNY largest pilot; digital euro preparing; US chose stablecoins).

Fabric's smart contracts, written in Go/JavaScript/Java, installed per channel.

A private ledger among a subset of network members — privacy by partition.

Solidity ordering discipline: update state before external calls — the reentrancy defence.

(Claims + expenses) ÷ premiums. Below 100% = underwriting profit.

How the network agrees whose block is next: PoW (lottery by work), PoS (stake + slashing), BFT (voting).

Steering models against explicit written principles — for insurers, a versioned, anchored conduct charter.

Corda's point-to-point protocol for negotiating and signing a shared fact between deal parties only.

Decentralised identifiers + signed attestations a customer can carry — reusable KYC's building blocks.

Fabric rule declaring which organisations must co-sign a transaction — approval matrices as physics.

Token standards: fungible units (stablecoins, deposits) / unique items (a policy, a cat-bond note).

Reads trail writes while events propagate to projections — design the UX contract for the gap.

Ethereum Virtual Machine — the shared computer every node runs so results need no trusted operator.

First notice of loss — the event that opens a claim; prime territory for AI triage.

Metered price of EVM computation. Out of gas → full revert, fee kept. Spam defence and design constraint.

US federal stablecoin law (2025): reserves, redemption, supervision — the institutional unlock.

Layered agent controls: input filters, output validators, action limits, kill-switches.

Deterministic one-way fingerprint; one changed character avalanches the output — tamper evidence's engine.

Incurred-but-not-reported losses — the reserving estimate for claims that happened but haven't been filed.

Insurance-linked securities transferring catastrophe risk to investors — tokenization's next insurance frontier.

An economic/governance property, not physics: rewriting costs more than it's worth — with fork and operator exceptions.

Executes cheaply off-chain, settles proofs/batches to Ethereum — cents-level fees with L1 security (Base, Arbitrum…).

Cover suspended for non-payment (Galileo: 31 days), possibly restored later — history retained either way.

Pairwise hashing to one root; proves a record's inclusion with ~log₂(n) hashes — audit without the full book.

EU Markets in Crypto-Assets regulation (2024) — licensing and reserve rules that made programmes plannable.

Being insured changes behaviour — countered by deductibles, waiting periods, exclusions.

Cluster attesting transaction uniqueness (no double-spend) without seeing full contents.

Brings external facts on-chain. In parametric cover, effectively the claims adjuster — govern accordingly.

Transactional intent table + relay → no dual-write race between database and chain.

Pays a preset amount when a measurable index crosses a threshold — no loss adjustment.

Politically exposed person — enhanced due-diligence category in KYC (and an eBao mandatory field).

Validators bond capital; misbehaviour is destroyed ("slashed"). Ethereum's model since The Merge (2022).

Hash-lottery consensus; security = energy cost of rewriting. Bitcoin's model.

Fabric feature: data shared peer-to-peer among authorised orgs; only hashes hit the channel ledger.

Malicious instructions hidden in processed content (a claim PDF saying "approve") — filter inputs, separate data from instructions, limit actions.

Each recipient withdraws their own funds — no payout loops a bad actor can block (DoS defence).

Reinsurance forms: proportional %-of-everything vs excess-of-loss above a retention; XoL layers stack into towers.

External call re-enters before state updates → double effects. The DAO's $60 M lesson; CEI + guards fix it.

The loss amount an insurer keeps before reinsurance responds.

Real-world assets (treasuries, funds, bonds) as on-chain tokens — $8.6 B → $23 B in H1 2025.

Human-readable key backup. Whoever holds it holds the funds; no reset exists. Never share, never type into websites.

Code at an address whose execution the network verifies — agreements that run themselves.

Contract refuses sales its reserve can't pay (reserve ≥ sold × payout) — capacity rules enforced per transaction.

Non-bank token pegged to fiat, reserve-backed (USDC, USDT) — Aon settled premiums in these, 2026.

Claims handled end-to-end without human touch — 70–90% reported in scaled AI deployments (vendor figures).

Insurer recovers a paid claim from the at-fault party's insurer — the State Farm↔USAA netting case.

2016 reentrancy exploit (~$60 M) that forced Ethereum's fork — origin of contract-security discipline and the ETC split.

Ethereum's 2022 switch PoW→PoS, cutting energy ~99.95% — removed the ESG objection to public chains.

A commercial-bank deposit as a token — stays in the regulated system, deposit insurance intact (JPM, Citi, TCH network).

Ledger as unspent-coins set (Bitcoin, Corda-like) vs balances+storage map (Ethereum).

Key-holding, transaction-signing software. Enterprise version = HSMs, multisig, key ceremonies.

Prove a statement true without revealing underlying data — solvency, KYC status, treaty compliance, privately.