BLOCKCHAIN is coming to the marine insurance world; EY and Guardtime today announced the launch of a blockchain platform specifically for the marine insurance sector.
After a 20-week proof of concept, the platform was launched in collaboration with A.P. Møller-Maersk, ACORD, Microsoft, MS Amlin, Willis Towers Watson and XL Catlin and after a 20-week proof of concept.
EY Asia Pacific insurance leader Jonathan Zhao said the platform would be the first application of blockchain to the marine insurance sector.
“Many insurers and regulators across the Asia Pacific region are very keen to see the development of more FinTech solutions tailored towards insurance companies,” he said.
The platform is built on Microsoft Azure global cloud technology and is planned to be implemented starting in 2018.
The blockchain platform connects clients, brokers, insurers and third parties to distributed common ledgers that capture data about identities, risks and exposures. It then integrates the information with insurance contracts.
In this way, it will connect disparate data and processes to address and mitigate the issues associated with the complexities of the marine insurance industry.
A.P. Møller-Maersk head of risk and insurance Lars Henneberg said it was a priority to use technology to streamline and automate the company’s interaction with the insurance market.
“Insurance transactions are currently far too tedious and frictional,” he said.
“The distance between risk and capital is simply too far. Blockchain technology has the potential to facilitate the desired development that is long overdue.”