ANZ has Partnered IBM to Build a Blockchain Solution for Insurance
Blockchain for Insurance
Australia and New Zealand Banking Group (ANZ) has announced that it’s working on a blockchain solution which will help improve efficiency in the insurance industry. The group has been working with tech giants IBM and also in partnership with the financial services firm Suncorp New Zealand. The main aim of the platform is to ease the transfer of data and premium payments mainly between insurers and brokers, therefore, making the process faster and more transparent.
According to ANZ managing director for New Zealand Paul Goodwin:
“The new technology will be combined with the existing solutions to capture the needed information to ensure that payments can be forecasted and made without the need for reconciliation.”
The insurance sector has always been slow especially because of the reconciling policy of information and the payments between the insurer and the brokers making the process very painful to some people. Goodwin said that the problem would be addressed by Blockchain. The planned concept comes from a proof-of-concept which has been showing Blockchain’s potential in solving inefficiencies in many sectors where reconciliation of statements is required. The technology will be able to show the list of premiums payable prepared by the broker on behalf of the insurer.
The proof-of-concept was built with fabric which is a blockchain based platform owned by the Linux Foundation. The platform is also backed by the Hyperledger consortium. According to the Chief Financial officer at Suncorp New Zealand:
“We have always researched on new ways to ensure operational efficiencies and the proof-of-concept has proved to be an exciting way to test whether the Blockchain technology will fasten the reconciliation process for insurance premium payments while improving customer experience for policymakers and all the business partners.”
According to ANZ while paper: “With this platform, the future of ecosystem with different insurers and brokers will be a viable one.” ANZ has been testing a number of Blockchain projects. One of the projects was the trial effort in 2017 which was aimed at digitizing the bank’s guarantee process for commercial leasing of property. The trial process involved Westpac, IBM, and Scentre Group. The group was also involved in the completion of a blockchain prototype in 2016 where it had partnered with Wells Fargo and Swift which would allow banks to reconcile payments through Swift using the Blockchain distributed ledger.