Blockchain Solution For Secure Data Sharing Developed By 14 Indian Life Insurers, Cognizantbr>
Information technology provider Cognizant and a consortium of Indian life insurers have developed a blockchain solution to facilitate cross-company data sharing.
The group of Insurance companies include SBI Life Insurance, Max Life Insurance, Canara HSBC OBC Life Insurance, Edelweiss Tokio Life, IDBI Federal Life Insurance, Birla Sun Life Insurance, HDFC Life, Kotak Life, Tata AIA Life, PNB MetLife, IndiaFirst Life Insurance, ICICI Prudential Life Insurance, Bharti AXA, Aegon Life, and SUD (Star Union Dai-ichi) Life Insurance.
Built on R3’s Corda blockchain, the solution is designed to help the insurers reduce their reliance on data intermediaries and aggregators in obtaining customer and policy details for a wide range of critical purposes, such as know-your-customer (KYC) due diligence, financial and medical underwriting, risk assessment, fraud detection, and regulatory compliance. It will enable the insurers to reduce the risk of data breaches, fraud and money-laundering, while attaining better efficiency, record-keeping and faster turnaround time.
Anand Pejawar, President — Operations, IT & International Business, SBI Life, said blockchain has the potential to catalyze a significant shift in the insurance industry’s underlying technology and business models.
“Blockchain can enable insurance providers to introduce new models, reinvent processes, and increase capacity,” Pejawar said. “We are pleased to be a part of this path-breaking consortium of Indian life insurers and collaborate with Cognizant on driving distributed ledger innovations of tomorrow.”
V. Viswanand, Chief Operating Officer of Max Life Insurance, said blockchain can rewrite the rules of competition in the insurance industry by transforming how insurance companies operate and interact with stakeholders across the value chain.
“The shared infrastructure provided by the distributed ledger, smart contracts and non-repudiation capabilities of blockchain can dramatically enhance the insurance value chain, and pave the way to greater automation in requesting, exchanging and entering data,” said Viswanand. “The partnership between our consortium and Cognizant is a significant step forward in leveraging the long-term strategic benefits of the technology and turning better customer experience into a competitive advantage.”
Arun Baid, Global Delivery Head for Insurance at Cognizant, said that their comprehensive blockchain and domain capabilities built over the years have made them a trusted advisor for insurance companies to realize blockchain’s full potential.
“As a shared source of truth, blockchain opens numerous possibilities for insurers to collaborate more effectively and transparently, make better informed decisions, and create greater trust and accountability, while disintermediating data aggregators,” said Baid. “We are proud to be a part of the consortium’s vision to create a more secure, streamlined ecosystem that can accommodate disruptive business models of tomorrow.”