Blockchain Regulatory Reporting Tool Piloted By US National Insurance Advisory AAISbr>
The American Association of Insurance Services (AAIS) is piloting a blockchain platform designed to automate the regulatory reporting of insurance data.
AAIS is a national insurance advisory organization and is one of the two major “rating bureaus” in the United States, along with the Insurance Services Office. It publishes standardized model insurance policy forms and prices which its insurance company customers use in their business.
AAIS, in partnership with IBM, developed a blockchain platform, dubbed Insurance Data Link (openIDL), using IBM’s Hyperledger Fabric. The platform is aimed to simplify regulatory reporting by allowing insurance carriers to store data on a permissioned blockchain for regulators to view on an as-needed basis. OpenIDL is currently in pilot, with several major insurers in the process of being onboarded.
“The openIDL supports statistical reporting for current and future data calls from regulators, often around emerging or regional exposures or specific events,” AAIS said. “With access to timely and accurate information, regulators and reporting carriers receive more holistic and dynamic reporting. Once reports are complete, regulators review and publish the report to the openIDL. While contributing statistical data to the openIDL distributed ledger satisfies regulatory requirements, data remains private and protected from external parties and other openIDL participants.”
As an open blockchain, the openIDL will also enable access to new insights from shared experience and input for the development of new products and services and market response and resiliency. AAIS is planning to add new features and capabilities in the future to support a broad array of use cases by carriers and industry partners.
“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,” said Sandip Patel, GM, IBM global insurance industry.