AAIS Partners with IBM Blockchain to Build Automated Insurance Reporting Tool
IBM Blockchain Helps Out American Association Of Insurance Services With New Reporting Tool
The American Association of Insurance Services (AAIS) made an annoucement to their clients that would be developing an automated insurance reporting tool. To get this technology adaption, they have partnered with the IBM Blockchain platform for support.
The new Insurance Data Link (openIDL) system is being developed with IBM Blockchain, specifically employing the use of Hyperledger Fabric. By using this system, it can help with regulatory reporting, as the data can be logged on a permissioned blockchain. Once logged, the regulators can view the necessary information for reporting purposes. By using this process, it is easier to streamline the rating data, and open it to the different state-level Departments of Insurance.
Craig Bedell, who is an academy member of the IBM, has discussed the reasoning for AAIS’s decision to collaborate. Based on the email to CoinDesk, IBM Blockchain had the open-source ledger and enterprise platform that the company needed for their services. Right now, AAIS has reports issued for each insurer, based on the local laws of the state. With the new system, there would not be a need for them to individually collect the reports, since the blockchain would maintain the record for them. At any given moment, the information could be examined without collecting it, which gives them more flexibility and profit towards other projects.
AAIS’s chief executive, Ed Kelly, released a statement to the press, describing the organization’s need for the Hyperledger Fabric support. Kelly said that their company sees “the potential for blockchain to streamline the regulatory reporting process for our member carriers, as well as the opportunity to improve security, accessibility and accuracy of data for regulators.”
The global manager for IBM Global’s insurance industry, Sandip Patel, commented on their partnership as well, saying, “Hyperledger Fabric's support for private and confidential transactions allows insurers to share data with the network, knowing that they own their data and have control over who has access to it.” He continued, expressing how the application of their technology is “an exciting example of how blockchain can bring together an entire ecosystem of users and allow information to be shared in new ways to drive real business results.”
Right now, though, the technology and the blockchain ledger is all in the beginning phases. Still, Bedell says that the use of this version of the platform is “open for business,” which coincides with the addition of insurance carriers and other organizations. Soon, the state Departments of Insurance will be onboarded too.