ANZ, IBM and Suncorp New Zealand have joined forces in an exploratory effort to use distributed ledger technology to help make the data transfer and payment reconciliation process faster and more transparent between brokers and insurers.
The project aims to reinvent the business processes behind intermediated insurance at ANZ by creating an interoperable network connecting all parties to transactional data.
The partners believe the use of DLT could not only decrease policy costs and improve customer service, but also build a foundation for the introduction of other technologies, such as artificial intelligence.
“Reconciling policy information and premium payments made by a broker to an insurer on behalf of customers is a slow and painful process,” says Paul Goodwin, ANZ managing director Institutional NZ. “The blockchain solution will be much more efficient for the industry as well as being very secure. As a ‘single source of truth’, it will provide greater visibility throughout the process, remove uncertainty and help make response times faster."
He says the ledger will interact with existing industry systems to capture relevant information; ensuring payments can be forecast and made without the need for reconciliation.
ANZ and IBM have released a proof-of-concept white paper on the technology, and how it will benefit the insurance industry.