IBM working on blockchain with insurance broker Marsh
In View Summary
Marsh MacLennan is currently working with IBM to develop a commercial blockchain solution to enable in an insurance verification process. The companies have also onboarded an insurance non-profit ACCORD corporation and ISN Software Corporation. The solution uses Hyperledger Fabric code and IBM’s Blockchain Platform.
The objective of the development is to solve the lack of transparency hiring third-parties. The solution helps to check whether the contractors or vendors have valid property liability insurance or not. The paper documents submitted by these third-parties validating the claim can be easily tampered, this is where blockchain helps. Blockchain registry entries are impossible to tamper and they offer real time processing at ease.
Blockchain ledger entries are completely secure, real-time and cannot be altered resulting in reduced frauds
This use case will help streamline the process of contractor’s insurance verification. Distributed ledgers replace manual paper-based systems with a real-time verfication certificates which saves both time and money.
However, this platform is still being piloted, with an expected release later in 2018. Sastry Durvasula, Marsh’s Chief Digital Officer and Chief Data and Analytics officer has said of this partnership: “Marsh sees great opportunity in leveraging blockchain technology to better serve our clients by maximising efficiency and creating new opportunities in the insurance value chain.”
Benefits to Customers:
Transparency and privacy
Benefits to the Insurer:
Single version of information
Less auditing pains
Improved claims processing and settlements
Reduced operational costs
The Digital Insurer's View
Although blockchain based use cases within insurance are at an early stage, blockchain is a promising method to optimise security, data privacy and real-time information processing. Vendor related insurance fraud is one of growing menaces which can hit a company’s bottom line hard. Marsh and IBM’s potential solution, if successful, has the potential to stop vendor insurance fraud and help in boosting blockchain technology adoption by organisations.