07 November 2017
Reporter: Stephanie Palmer

Allianz explores blockchain for captives

Allianz Global Corporate & Specialty (AGCS) has implemented a blockchain prototype for a global captive insurance programme, intended to improve the efficiency of international corporate insurance transactions.

The prototype is intended to show how transactions can be accelerated and simplified, including cash transfers between countries, through a convenient user interface and information tracking.

The AGCS Allianz Risk Transfer (ART) business paired up with EY and digital agency Ginetta, to create the solution for a long-standing, but as yet un-named, global client.

ART has also partnered with Citi Treasury and Trade Solutions, which will provide the payment processing services for the prototype.

The prototype uses blockchain technology to automatically connect all parties involved in the captive insurance programme, sharing a distributed ledger of record transactions and data entries, sharing any changes across users in real time.

Distributed ledger technology allows for more transparency, efficiency and security when sharing information, and in business processing and transaction reporting. It also makes for improved reliability and auditability.

Built on the Hyperledger Fabric 1.0 blockchain framework, the prototype focuses on professional indemnity and property insurance policies, and in particular addresses annual policy renewals, premium payments and claims submission and settlement.

Yann Krattiger, principal at ART, said: “Our captive insurance blockchain prototype demonstrates that regular transactions and cash transfer between fronting insurers and clients can be significantly accelerated and simplified.”

He added: “Automated processing replaces the exchange of thousands of emails and massive data files.”

EY project manager Isabella Brom commented: “The captive insurance blockchain prototype is a prime example of EY’s approach on co-innovating with our clients. It allowed us to demonstrate and trial the power of distribution and decentralisation in the transformation of the insurance industry, using the Hyperledger Fabric Composer toolset to achieve fast and flexible prototype results.”

“The project deepened our and our client’s understanding of how applied blockchain technology will not only fundamentally change insurance as we know it but also create new business models.”

This is not Allianz’s first foray into blockchain technology. In June last year, ART successfully tested the use of blockchain technology in transacting a natural catastrophe swap.

Allianz SE is also part of the B3i blockchain insurance industry initiative, which also recently released a prototype blockchain technology for reinsurance.

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
AIG to acquire Validus
22 January 2018 | New York | Reporter: Ned Holmes
AIG has agreed to acquire all outstanding common shares of Validus, the provider of reinsurance, primary insurance and asset management services, in a deal worth $5.56 billion
South Carolina welcomes 15 new captives
19 January 2018 | Charleston | Reporter: Becky Butcher
The South Carolina Department of Insurance has licensed a total of 15 new captives in 2017
A.M. Best withdraws SARRG ratings
19 January 2018 | Oldwick | Reporter: Ned Holmes
A.M. Best has withdrawn the credit ratings of SARRG, after the company requested to no longer participate in the rating agency’s interactive rating process
Regions Insurance promotes Mike Breedlove
19 January 2018 | Alabama | Reporter: Ned Holmes
Regions Insurance has appointed Mike Breedlove as its new executive vice president of property and casualty operations
Advantage opens Vermont office
18 January 2018 | Vermont | Reporter: Ned Holmes
Advantage Insurance has opened a new office in Vermont to support its growing captive insurance services business
Tennessee captive premiums exceed $1 billion mark in 2017
18 January 2018 | Nashville | Reporter: Ned Holmes
Tennessee-domiciled captive insurance companies exceeded $1 billion in written premiums in 2017 for the first time, according to year-end figures from TDCI
JLT IM hires new senior account manager
17 January 2018 | Vermont | Reporter: Ned Holmes
JLT IM has appointed Jocelyn Lyman as a new senior account manager