Insurers Working Toward Blockchain Automation on Claimsbr>
The traditional insurance broker may be disintermediated if a new blockchain prototype gains traction.
Blockchain insurance consortium B3i – which includes Liberty Mutual, Aegon, Allianz and other big insurers – is working on a prototype to automate many processes of catastrophe insurance. Through access by insurers and re-insurers (those who insurance the insurance company to mitigate risk and, in some cases, taxes) to the same information, the need for brokers would be lessened.
The work came to light in a Coindesk interview with Paul Meeusen, the director of global business solutions for Swiss Re, a reinsurance company.
With the new protocol – called Codex 1 – the broker’s role of paperwork shuffling is moved to a permissioned blockchain that automates settlements and claims without revealing terms to any counterparties.
While catastrophe insurance is the current focus, Meeusen added that casualty lines, including motor vehicle and workmen’s compensation claims, could be next on the agenda.