Shipping giant A P Møller-Maersk has teamed up with international professional services company EY and the world's largest blockchain company Guardtime to launch the world's first blockchain platform for the marine insurance sector.
Other participants in this collaboration include global insurance industry organisation ACORD, and well known names like Microsoft, MS Amlin, Willis Towers Watson and XL Catlin.
The blockchain platform — built on Microsoft Azure global cloud technology and launched after a 20-week proof of concept — is positioned to provide significant value to the insurance industry and is planned to be implemented from 2018 onward.
The global blockchain platform connects clients, brokers, insurers and third parties to distributed common ledgers that capture data about identities, risk and exposures, and integrates this information with insurance contracts. The platform’s capabilities include the ability to create and maintain asset data from multiple parties; to link data to policy contracts; to receive and act upon information that results in a pricing or a business process change; to connect client assets, transactions and payments; and to capture and validate up-to-date first notification or loss data.
Insurers can use this blockchain platform to improve their capital and gain efficiencies, with increased transparency and reduced manual data entry or reconciliation and administration costs.
The platform’s initial phased rollout will involve deploying the benefits of blockchain for end-to-end use across the marine industry.
Mr Shaun Crawford, EY Global Insurance Leader, said: “Blockchain’s potential to transform the insurance ecosystem has always been clear. What we have done is to move forward from potential to reality. This solution is the first to apply blockchain’s transparency, security and standardisation 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.”
Mr Lars Henneberg, A P Møller-Maersk 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.”
Mr Mike Gault, Guardtime CEO, said that his company's KSI® blockchain stack is a proven technology for securing the physical, software and information supply chains that enterprises rely on for the integrity of their businesses.