Insurance advisory firm taps IBM blockchain for regulatory tool
The American Association of Insurance Services is using blockchain technology in its newly launched openIDL service, which facilitates shared between insurance carriers and regulators.
Historical and current data will be stored on a distributed, with regulators able to access to view only the information they have permission to view. Participating carriers will also be able to see their own data profile to understand how they compare to the market. AAIS says this provides a more transparent, efficient means of helping insurance companies meet reporting requirements.
"We recognized the potential for blockchain to streamline the regulatory reporting process for our member carriers, as well as the opportunity to improve security, accessibility and accuracy of data for regulators," says AAIS CEO Ed Kelly.
The services is built using the IBM Blockchain Platform and the Hyperledger Framework. Several carriers are being onboarded, according to the companies; AAIS provides the governance for the platform.
"This is an exciting example of how blockchain can bring together an entire ecosystem of users and allow information to be shared in new ways to drive real business results. Hyperledger Fabric's support for private and confidential transactions allows insurers to share data with the network, knowing that they own their data and have control over who has access to it," adds Sandip Patel, general manager, IBM Global Insurance Industry. "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."