The insurance industry has now moved full force into the use of blockchain.
In a joint announcement, American International Group Inc. (AIG), IBM and Standard Chartered Bank have shared news of initiating the first multinational smart contract, utilizing blockchain technology, for firms that need a multinational insurance policy.
While IBM built this pilot solution, based on Hyperledger Fabric, AIG and Standard Chartered Bank assisted in bringing this to a larger scale. This new blockchain-based smart contract will have a controlled master multinational insurance policy written out of the U.K. and three local policies to cover the U.S., Singapore and Kenya. Through this new offering, policy data and documentation will now have the ability to be updated in real time.
AIG CEO of Commercial Rob Schimek commented on this new joint effort and shared what it means for the insurance industry.
"Our pilot proves blockchain has a powerful role to play in the future of insurance. Any technology, including blockchain, that can increase trust and transparency for the insurance industry, whose pillars are built on that, should be fully explored. We're excited to be delivering innovation that matters to our clients — and co-developing key components of this new technology together," said Schimek.
With this venture into the insurance industry, this may mean broader use of blockchain technology down the line in other industries.