Banking Insurance News

Broadridge-backed LiquidX automates trade credit insurance using blockchain

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Yesterday LiquidX announced it’s piloting blockchain, smart contracts and AI to automate trade credit policy management and compliance processes and integrate the policies into financial workflows. In November last year, it was announced that Broadridge is LiquidX’s biggest investor.

Not all LiquidX’s offerings leverage blockchain. Its accounts receivable and supply chain finance platform LiquidX360 is not blockchain-based. InBlock was the brand used for its blockchain-based invoice and purchase order digitization platform. The new insurance solution extends the branding as InBlock Digital Policy Management.

Back in 2019, LiquidX first launched its trade insurance marketplace with broker Marsh and underwriters Euler Hermes and Atradius.

Todd Lynady, Global Head of Insurance at LiquidX, outlined the benefits of the new blockchain insurance solution. “Insured parties and their lenders gain confidence a policy will perform, insurers gain a real-time view of actual value at risk, and brokers benefit from reduced E&O exposure by the automation of critically important policy compliance requirements,” he said. 

The startup worked with a financial institution and a corporate to develop the policy management offering.

“We built InBlock to do the hard work of digitizing and automating manual processes across the entire working capital ecosystem. Trade credit insurance, which has traditionally been user-intensive and not integrated into finance systems, is a great use case for InBlock,” said Jim Toffey, CEO of LiquidX. 

“Five years from now, we will look back and wonder how policies were ever managed prior to InBlock Digital Policy Management.”

Meanwhile, blockchain and trade finance continues to expand and integrate with supply chain processes. Blockchain shipping platform TradeLens and trade finance offering we.trade will integrate MonetaGo, the anti-fraud solution used to prevent double financing. And the other big shipping platform GSBN has set up a trade finance advisory group that includes HSBC, DBS and the Bank of China (HK).