Legal & General unveils first blockchain reinsurance platform using Amazon
UK insurer Legal & General Group has developed what it claims to be the "first pension risk transfer execution platform driven by blockchain technology" using Amazon Web Services (AWS).
The platform, estua-re, is said to be capable of driving every stage of the Pension Risk Transfer (PRT) reinsurance value chain including pricing, claims handling, financial reporting and collateral, utilising data dynamically stored on the blockchain.
It is designed to replace multiple processes and systems traditionally used to support each function, with the added security of blockchain technology.
Amazon Managed Blockchain enables multiple parties to transact with each other without needing an intermediary, and provides all members a copy of the ledger database, providing greater transparency.
L&G said launching the platform is a part of its PRT reinsurance strategy to become a global leader in annuities.
Thomas Olunloyo, CEO of Legal & General Reinsurance said: “‘estua-re’ is the result of market leading innovation led by the L&G Re team and an exciting milestone in the deployment of blockchain in the long term reinsurance space.
"Using AWS we have been able to create a solution that addresses not only the greater speeds at which risks are transacted but also drives transparency and security in an increasingly interconnected market."
Olunloyo added: "We believe that blockchain is uniquely suited to the long term nature of annuities business as it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years.”
Rahul Pathak, general manager of Amazon Managed Blockchain at AWS said: “It’s exciting to see how customers like Legal & General Reinsurance are using Amazon Managed Blockchain to create innovative products that allow multiple parties to work together in a trusted way, enabling them to simplify and speed up their systems and processes.
"With Amazon Managed Blockchain, Legal & General Reinsurance can focus on building new business applications that enrich the experience for their customers and transform their business instead of dealing with the challenges of keeping a blockchain network up and running, all while taking advantage of the security and scalability the service offers.”
