American International Group Inc. (NYSE: AIG), IBM (NYSE: IBM) and Standard Chartered Bank plc have announced the successful pilot of a multinational, smart contract based insurance policy using blockchain technology based on Hyperledger Fabric.
The developers converted a multinational, controlled master policy written in the UK, and three local policies in the US, Singapore and Kenya, into a ‘smart contract’ that provides a shared view of policy data and documentation in real-time.
Rob Schimek, CEO of Commercial, AIG, said: “Our pilot proves blockchain has a powerful role to play in the future of insurance. Any technology, including blockchain, that can increase trust and transparency for an industry whose pillars are built on that, should be fully explored. We’re excited to be delivering innovation that matters to our clients – and co-developing key components of this new technology together.”
Emily Jenner, Head of Insurable Operational Risk at Standard Chartered, said: “As a global bank we have to ensure consistent, trustworthy and secure financial transactions, be that as part of our business or as customers ourselves. By creating a process by which we can arrange multinational insurance contracts through blockchain we not only have transaction security but contract certainty across multiple business locations.”
Marie Wieck, General Manager, IBM Blockchain, said: “There is tremendous opportunity to apply advancements in blockchain technology to transform the insurance industry. By helping solve some of the biggest problems challenging the industry from eliminating silos of information to improving efficiency, blockchain can truly make an enormous impact and even lead to new business models.”
“We chose these three territories because of their importance to Standard Chartered and also because of their regulatory complexity, so that we could fully test how blockchain technology might make these contracts work more efficiently,” said Standard Chartered’s Jenner.