The Institutes RiskStream Collaborative ran a study to prove whether its Mortality Monitor is a viable insurance blockchain use case. The purpose is for insurers is to share their information about a policyholder’s death with other insurers. A key aim of the enterprise blockchain solution would be to lower costs in the Life and Annuity sector and achieve a faster payout on death. RiskStream has more than 40 carriers in its blockchain consortium.
By exploring five years of data across just three carriers, the study found that 4% of deceased policyholders had products with multiple providers, a very high figure for just three insurers. That said, in a 2018 population of 330 million, there were 267 million life insurance policies.
Furthermore, in the study where there were two policies, there was a median gap of 55 days between the payout on the first policy and second policy, implying that the second insurer found out about the death rather late. By sharing the data about the death between insurers, that gap could be bridged and reduce the duplication of work required across insurers to collect death data.
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