India – Life insurers work to develop industry-wide blockchain solution
PartnerIndian Life Insurers
In Action Summary
In India, Cognizant has teamed up with a consortium of life insurers to develop a blockchain solution to facilitate cross-company data sharing. The distributed ledger solution aims to reduce the risk of data breaches, fraud and money laundering. At the same time, the solution will deliver superior experiences to customers through improved process efficiencies, better record keeping, and accelerated turnaround times.
The solution is built on CORDA, a distributed ledger platform developed by R3 and hosted on Microsoft’s Azure cloud.
Arun Baid, head of Global Delivery for Insurance, Cognizant has said of the effort: “As a shared source of truth, blockchain opens numerous possibilities for insurers to collaborate more effectively and transparently, make better-informed decisions, and create greater trust and accountability, while disintermediating data aggregators. Our comprehensive blockchain and domain capabilities built over the years have made us a trusted advisor for insurance companies to realize distributed ledger’s full potential. We are proud to be a part of the consortium’s vision to create a more secure, streamlined ecosystem that can accommodate disruptive business models of tomorrow.”
Applying blockchain across the insurance value chain
The life insurance consortium includes SBI Life Insurance, Max Life Insurance, Canara HSBC OBC Life Insurance, Edelweiss Tokio Life, IDBI Federal Life Insurance, Birla Sun Life Insurance, HDFC Life, Kotak Life, Tata AIA Life, PNB MetLife, IndiaFirst Life Insurance, ICICI Prudential Life Insurance, Bharti AXA, Aegon Life, and Star Union Dai-ichi Life Insurance.
Key features include –
Reduced reliance on data intermediaries and aggregators for customer and policy details for fraud detection, regulatory compliance etc.
Ensures real-time data availability, transparency and record consistency.
Reduced operating costs, data redundancy issues.
According to Anand Pejawar, President – Operations, IT & International Business, SBI Life, “With its model of immutable and decentralised data, and its ability to prevent tampered documents and false billings from falling through the cracks, blockchain can enable insurance providers to introduce new models, reinvent processes, and increase capacity.“
Ultimately, this initiative is an example of a US firm leveraging the rich STEM skill sets of India’s workforce to seize the opportunities presented by new fields such as blockchain and AI.
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