Leading insurance broker Marsh announced it is working on a commercial blockchain for proof of insurance. Traditionally a Certificate of Insurance is manual and paper-based. Creating a blockchain digital version can accelerate some business functions such as hiring contractors.
Late last year Nationwide launched a consumer proof of insurance product for motor insurance.
The advantage Marsh has as a broker is the ability to provide proof of insurance for numerous insurer carriers.
The broker is collaborating with ISN which works with contractors and suppliers in capital-intensive industries like construction and oil extraction. A part of ISN’s role is to make sure contractors have appropriate insurance. The company helps to manage more than 67,000 contractors in 85 countries.
“The insurance industry has been dependent on paper certificates of insurance, manually populated by an insurance agent,” said Brett Parker, technical insurance lead, ISN. “By digitizing the policy information, we can streamline the process saving our customers time to focus on their core competencies.”
Marsh is working with IBM and using Hyperledger Fabric. They also have input from ACORD, the insurance data standards body. The project is currently in pilot phase and expected to go live later in the year with ISN as the first client.
“Vastly simplifying the process for providing proof of insurance is a key enabler of business. IBM is committed to connecting emerging blockchain networks to facilitate the next generation economy. This is an ideal example of how blockchain can be used on a much broader scale to drive real business results,” said Sandip Patel, general manager insurance, IBM.
Sastry Durvasula, chief digital officer at Marsh, commented: “We believe strategic engagements such as this one with IBM, ACORD, and ISN will help accelerate the adoption of further blockchain applications benefiting our clients across industries.”