The American Association of Insurance Services (AAIS), which is the apex advisory body related to insurance in the United States, has revealed its plans to launch its insurance database and reporting instruments using the blockchain technology, according to a recent video announcement made by the said advisory body on August 15.
The blockchain platform is named Insurance Data Link (openIDL) and is based on IBM enterprise blockchain solution using Hyperledger Fabric. They intend to reduce cumbersome and rather “burdensome” process in the conventional statistical reporting procedure. This will also go beyond cost and data processing periods for the use of insurance services. According to the report, it was expressly stated that:
“The openIDL will run on the IBM Blockchain Platform powered by the Hyperledger technology, which currently hosts 250 active blockchain networks, and hundreds of individual blockchain projects across various industries. Hyperledger is an open source collaborative effort created to advance cross-industry blockchain technologies hosted by the Linux Foundation. Hyperledger provides the groundwork to scale openIDL for insurance industry-wide access.”
The report also has it that openIDL will also be launching an initiative described as the “first secure, open blockchain platform that enables the efficient and permissioned-based collection of statistical data on behalf of insurance carriers, regulators, and other participating contributors.”
The company claimed that the adoption of blockchain technology in solving insurance-related challenges is solely propelled by a desire to provide what it described as “timely and accurate information,” and to also allow regulators with oversight responsibilities to gather “holistic and dynamic reporting.”
Also, the advisory body announced that the openIDL platform would also develop an automated data uploading system, in order to ensure automatic transactions execution and to give unreserved access to insurance data on “permissioned basis in near-real time” instead of time-consuming data calls in the conventional practice.
OpenIDL will also be considering focusing carriers and institutions of “every size and configuration,” such that they can constitute blockchain consortia, platforms, and applications to improve the insurance sector and the economy at large.
Earlier this year, global insurance brokerage and risk management firm Marsh also announced the first commercial blockchain initiative for proof of insurance to move their system “from complicated and manual to streamlined and transparent.”
It was reported last year that a group of fourteen European insurance providers partnered with Deloitte and other conglomerates in order to provide a simple system for insurers to comply with the Hamon Law, which consequently requires insurers and provide rather straight to the point transfers for clients who want to change companies during the first year.
This step by the insurance sector of the United States has simply added it to the list of innovative sectors around the world which has taken advantage of transparency and efficiency which are readily features of the blockchain system.