American International Group, IBM and Standard Chartered Bank have converted a multinational, controlled master policy written in the UK, and three local policies in the US, Singapore and Kenya, into a 'smart contract' that provides a shared view of policy data and documentation in real-time.
The pilot, built by IBM on Hyperledger Fabric, brings added transparency and trust to a complex underwriting process that involves the management and placement of multiple insurance policies across different jurisdictions.
The project also demonstrated the ability to include third parties in the network, such as brokers, auditors and other stakeholders, giving them a customised view of policy and payment data and documentation.
Rob Schimek, CEO of Commercial, AIG says: “Our pilot proves blockchain has a powerful role to play in the future of insurance. Any technology, including blockchain, that can increase trust and transparency for an industry whose pillars are built on that, should be fully explored. We’re excited to be delivering innovation that matters to our clients - and co-developing key components of this new technology together.”
Emily Jenner, head of insurable operational Risk at Standard Chartered, adds: “As a global bank we have to ensure consistent, trustworthy and secure financial transactions, be that as part of our business or as customers ourselves. By creating a process by which we can arrange multinational insurance contracts through blockchain we not only have transaction security but contract certainty across multiple business locations.”