Ernst & Young (EY) and software security firm Guardtime, in collaboration with six industry participants including AP Moller-Maersk and Microsoft, have launched the world’s first blockchain platform for the marine insurance sector.
The blockchain platform – built on Microsoft Azure global cloud technology – is positioned to provide significant value to the insurance industry and is scheduled to be implemented from 2018 onward. The first of its kind in the insurance industry, the platform’s initial phased rollout will involve deploying the benefits of blockchain for end-to-end use across the marine industry. Lars Henneberg, AP Moller-Maersk’s head of risk and insurance, said: “It is a priority for us to leverage technology to streamline and automate our interaction with the insurance market.
Insurance transactions are currently far too tedious and frictional. The distance between risk and capital is simply too far. Blockchain technology has the potential to facilitate the desired development that is long overdue.” The blockchain platform supports the marine insurance industry to address the challenges of its complex international ecosystem involving multiple parties, long paper chains and duplication, high transaction volumes and significant levels of reconciliation – all potentially preventing transparency, compliance and accurate exposure management. The blockchain platform connects disparate data and processes to address and mitigate the issues associated with reconciliation and error applicability. Jonathan Zhao, EY Asia-Pacific insurance leader, said: “This solution is the first to apply blockchain’s transparency, security and standardization to marine insurance and is ready for commercial use. We look forward to deploying this technology across the marine insurance industry and are exploring how these findings and insights will be applied to other specialty insurance markets and beyond.”
The six industry participants include AP Moller-Maersk, Microsoft, Acord, MS Amlin, Willis Tower Watson and XL Catlin