The Institutes RiskStream Collaborative consortium (formerly RiskBlock), in conjunction with LIMRA, have added a credentialing blockchain use case for the life insurance industry.
Last year, the RiskStream Collaborative, set up in 2017 for the exploration of the potential of new technologies in the insurance industry, and LIMRA, the professional partner for the consortium’s life and annuities sector, had agreed to work on a blockchain-based death notification system dubbed as a “Mortality Monitor”.
However, either the Mortality Monitor or the credentialing project will progress to a Proof of Concept this year with plans to go into production in 2020.
A working group of nine members from the consortium’s life and annuities section aims to develop a blockchain based licensing and appointments application. The app will use state and federal regulatory data to validate agents’ and advisers’ credentials to sell certain life insurance and annuity products. The regulatory information will also be available to other RiskStream Collaborative members for their own use.
A blockchain solution could help drastically reduce paperwork. According to LIMRA research, 200 000 independent agents in the U.S. have an average of 11 carrier sales agreements. This requires them to submit paper credentials many times to comply with regulatory requirements. Indeed, the problem is only multiplied when the agents conduct their business in many different U.S. states.
Gina Birchall, chief operating officer, LIMRA, LOMA and LL Global, explains further: “Blockchain offers a unique solution that can benefit our industry and its consumers. Streamlining these core business processes will save carriers and distributors money and resources, allowing them to offer greater value to their customers.”
The announcement comes after the RiskStream Collaborative U.S. Life & Annuity Advisory Board unanimously voted to select licensing and appointments as its next target area.
Last year RiskStream launched its Canopy 2 framework which provides policy and claims blockchains. By using the policy blockchain, other apps can build more specific use cases. R3’s Corda enterprise blockchain technology underpins Canopy 2.
RiskStream has an ambitious agenda for the next year. In Property & Casualty insurance where it has 39 members, it’s planning to roll out its first two applications for Proof of Insurance and First Notice of Loss. These are in final testing at the moment. After that, it’s likely to progress the subrogation solution which it temporarily put on the back burner.
Plus it recently unveiled its entrance into the blockchain reinsurance sector after signing Aon and Guy Carpenter as partners. The two companies are the largest reinsurance brokers in the world.