Today the American Association of Insurance Services (AAIS) announced it is piloting a blockchain project for reporting to US state regulators. AAIS is a non-profit governed by the Property and Casualty insurance industry. It gathers information from the industry and analyses it to provide loss reports and rating information for carriers and state regulators.
The project called open Insurance Data Link (openIDL) will involve writing the data to a secure blockchain. This allows the data to be shared with appropriate parties in a secure and tamper-proof manner. Regulators have permission to access only the data they need.
Participating carriers can also view their own information and see a comparison with the rest of the market as a whole.
The project aims to improve operational efficiency, thereby reducing costs. Plus in doing so, additional insights might be available to the industry.
AAIS CEO Ed Kelly, “We recognized the potential for blockchain to streamline the regulatory reporting process for our Member carriers, as well as the opportunity to improve security, accessibility, and accuracy of data for regulators.”
“Simplifying the process for insurance reporting using blockchain will create dynamic shifts in efficiency and provide the industry with new insights that will even benefit consumers. This is an exciting example of how blockchain can bring together an entire ecosystem of users and allow information to be shared in new ways to drive real business results, ” said Sandip Patel, general manager, IBM Global Insurance Industry.
The project uses the Hyperledger Fabric blockchain platform. Recently Marsh announced a project for proof of insurance on the same platform.
Other insurance initiatives
In the last few months, several insurance initiatives have gone with R3’s Corda technology. Next month RiskBlock plans to launch its blockchain platform with backing from the major US insurers. And later in the year B3i owned by several of the worlds largest insurers will launch its reinsurance XOL platform.