UK insurer Legal & General Teams With Amazon On Pension Risk Blockchain Platform

Blockchain, News | June 12, 2019 By:

Legal & General (L&G), a British multinational financial services company, has teamed with Amazon to establish “the first blockchain system for corporate pension deals.”

Based in London, L&G provides various insurance products and services worldwide. Its products and services include investment management, lifetime mortgages, pensions, annuities, life assurance, and general insurance. The firm is one of the UK’s largest investment managers for corporate pension schemes with more than £1 trillion in total assets under management.

Legal & General’s partnership with Amazon will allow it to use a managed blockchain system launched by Amazon Web Services (AWS) to handle bulk annuities, which involve Legal & General taking over companies’ defined benefit or final salary pension schemes.

“We believe that blockchain is uniquely suited to the long term nature of annuities business as it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years,” said Thomas Olunloyo, CEO of Legal & General Reinsurance.

L&G will initially be launched for bulk annuity business outside its core markets of Britain and the United States, but an L&G spokesman said that the platform could be extended to those two markets in future.

“With Amazon Managed Blockchain, Legal & General Reinsurance can focus on building new business applications that enrich the experience for their customers and transform their business instead of dealing with the challenges of keeping a blockchain network up and running, all while taking advantage of the security and scalability the service offers,” said Rahul Pathak, General Manager, Amazon Managed Blockchain at AWS.