IBM Blockchain to Enhance US Insurance Reporting

Blockchain technology will back the insurance industry again, as the American Association of Insurance Services (AAIS) is piloting a platform built on IBM blockchain that is set to automate the regulatory reporting of insurance data in the US.

The core purpose of the project, called openIDL (open Insurance Data Link), is to reform the outdated compliance process currently in use and allow insurers to deliver data directly onto a secure blockchain platform. Regulators will only have access to the information they need, while participating carriers will be able to view their own data profile to get an image of their place in the market.

“Ultimately, the goal of the openIDL is to turn expensive regulatory and compliance requirements into investments in operational efficiency and improved insights,” wrote the not-for-profit AAIS in a statement on Wednesday.

Blockchain technology emerged as the right solution to enhance the security, accuracy and accessibility of data for regulators, as it is well suited to sustain large networks, the advisory organization said.

Based on IBM’s blockchain platform, which uses the Hyperledger Fabric framework, openIDL is still in pilot, but several insurers are at present being onboarded to it.

The collaboration with AAIS is another step IBM is taking into the insurance sector. In April, the tech giant teamed up with insurance firm Marsh in a bid to create a commercial Proof of Insurance (POI) tool based on blockchain. A month later, IBM inked a partnership with Australian and New Zealand Banking Group (ANZ) and Suncorp New Zealand to explore how blockchain technology could facilitate the transfer of insurance data and payment processes between brokers and insurers.

As for the deployment of blockchain in insurance, the sector has witnessed a variety of initiatives. The Institutes RiskBlock™ Alliance, for instance, was founded in 2017 to promote the use of the technology in insurance and currently includes over 30 companies. The latest company to join the collaboration was Accenture. Another insurance union called B3i is scheduled to release later in 2018 its Property Cat XOL, a system based on the R3 Corda blockchain platform that will look to handle reinsurance contracts.