The American Association of Insurance Services (AAIS), one of two major ‘rating bureaus’ in the U.S., has partnered with IBM to launch a blockchain insurance data platform.
Built on IBM’s Hyperledger Fabric enterprise blockchain solution, the platform, entitled Insurance Data Link (openIDL), aims to simplify regulatory reporting for insurance carriers, which currently requires time-consuming data calls across various parties.
OpenIDL intends to resolve this with its automated data uploading system, smart contracts to enable automatic transactions’ execution, and allowing regulators to access insurance data on a “permissioned basis in near-real time” using blockchain technology.
According to a report released on Wednesday, openIDL is operating the:
“first secure, open blockchain platform that enables the efficient and permissioned-based collection of statistical data on behalf of insurance carriers, regulators and other participating contributors.”
Beginning with pilot trials, open IDL intends to resolve “burdensome” statistical reporting processes by enabling insurance carriers to store data on a permission-based blockchain for regulators to view on an as-needed basis.
Furthermore, the shared nature of the blockchain insurance data platform, will enable access to new insights for the industry, improving the development of new products and services and market response and resiliency.
AAIS have said that it plans to work with carriers and industry partners to develop new features and capabilities, in order to support a broad array of use cases in the future. General Manager for the Insurance industry at IBM, Sandip Patel stated:
“While the initial phase of the openIDL focuses on data sharing and regulatory reporting, the open platform provides a foundation for even broader innovation and new applications in the future, while providing full privacy and confidentiality protection among parties,”
The openIDL solution is currently on-boarding several major insurers, and is reported to be targeting carriers and organisations of “every size and configuration,” such as blockchain consortia, platforms and applications.
There are a number of blockchain trials aiming to improve inefficiencies within the insurance industry. As per a previous BCTech Report back in April, global insurance brokerage firm Marsh partnered with IBM to launch the world’s first commercial ‘proof of insurance’ blockchain solution.