ANZ, IBM, and Suncorp New Zealand have developed a blockchain based solution designed to reconcile transactions between brokers and insurers.
This particular distributed ledger enables users to make data transfers and payments in a transparent and seamless manner. It also aims to improve on the existing inefficiencies involved in complicated reconciliation processes wherein an individual’s payments toward an insurance company are made through a broker who sold the insurance product. Currently the payment process is very slow and tedious. The solution focuses on three use cases in particular:
- The efficient transfer of data relating to quotes and policy issuance, removing the need for authorising and reconciliations at various stages
- Bulk payments automatically allocated from brokers to insurers down to individual policies.
- The ability to enact automated reporting for both insurers and brokers.
Problem areas which can be eliminated using blockchain
The solution also integrates an automated payment process, which enables straightforward bulk payments that are recorded and tracked on the ledger.
Tim Buckett, CFO at Suncorp New Zealand, has summarized this effort: “We’re always looking at ways to generate operational efficiencies and the proof-of-concept was an exciting way to test whether a technology solution can speed up the reconciliation process for insurance premium payments, while at the same time improving the customer experience for policyholders and our business partners.”