Allianz Global Corporate & Speciality (AGCS) division has developed a blockchain prototype for captive insurance policies as blockchain advisory service provider, digital agency Ginetta (Zurich), and Citi Bank Treasury and Trade Solutions.
The prototype is aimed at streamlining self-insurance or captive insurance policies which are typically more complex due to the multiple jurisdictions that it covers.
Allianz’s prototype is aimed at streamlining captive insurance policies processing which has increased complexity due to the multi jurisdictional coverage it involves.
The captive insurance blockchain prototype is built on the Blockchain framework Hyperledger Fabric and is currently being tested with Professional Indemnity and Property for a captive insurance program. Specifically, the application targets three common process flows in the captive insurance cycle—annual policy renewals, premium payments and claims submission and settlement. These processes are translated into the distributed ledger environment decreasing policy issuance time and time from claim to settlement.
The benefits of using this blockchain based platform for Allianz includes increased transparency, greater control on transactions and a lower fraud rate.
Customers benefit from the increased speed and reliability of policies issued through the Hyperledger Fabric.
According to Allianz “this project allowed us to demonstrate and trial the power of decentralization in the transformation of the insurance industry. The project deepened ours and our client’s understanding of how applied blockchain technology will not only fundamentally change insurance as we know it but also create new business models.”
Ultimately, although blockchain is still in its infancy, the degree to which multi-national insurers are testing blockchain across multiple product lines and use cases demonstrates the imminent disruption which blockchain poses to the industry.
