Aegon, Allianz, Munich Re, Swiss Re and Zurich to test blockchain viability
Aegon, Allianz, Munich Re, Swiss Re and Zurich have launched the blockchain Insurance Industry Initiative B3i, which aims to test the distributed ledger technology’s viability to executive digital contracts and transactions in a secure, transparent and auditable way.
The blockchain technology can only reach its full potential for stakeholders if implemented in a consistent and compatible way, according to Aegon, which is why this initiative was been introduced.
Aegon, Allianz, Munich Re, Swiss Re and Zurich have therefore agreed to cooperate for a pilot project, using anonymised transaction information and anonymised quantitative data, in order to achieve a proof-of-concept for inter-group retrocessions by the use of the blockchain technology.
If blockchain proves to be viable, Aegon suggests it could streamline paper work and reconciliations for re/insurance contracts and accelerate information and money flows, while substantially improving auditability.
“Blockchain has the potential to provide a consistent, automatic contract execution environment where transactions and contracts are stored on a shared ledger, thus reducing the administrative workload of multiple stakeholders to ensure contract consistency and execution,” said Aegon.
The study will test if blockchain can be used to develop standards and processes for industry-wide usage and to catalyse efficiency gains in the insurance industry.
"We are delighted to participate in this important initiative", said Mark Bloom, chief technology officer and management board member of Aegon.
"We anticipate substantial benefits from blockchain-based solutions being implemented in the heart of our business. There is a lot of work to be done and we really look forward to working together with the other members in this initiative on innovative ledger technologies."