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.