IBM, a globally renowned technology giant, is partnering up with ANZ, a banking institution whose stature in New Zealand is unmatched, to establish a blockchain-based insurance solution. The new product is yet to hit the market, though its tester are hailing it as potential gamechanger to the insurance and brokerage sector.
The project, which was initially crafted by ANZ, leverages the proof of concept protocol which relies on blockchain technology to streamline the speed of operations within the insurance industry. It is expected to ease the friction that is often associated with the sector, especially during the reconciliation of payments between brokers and insurance providers.
ANZ & IBM Partnership: Transparent Insurance Industry
In the project whitepaper, ANZ specifies that the solution is built on the famed Hyperledger Fabric blockchain software, a product of the Linux Foundation. Essentially, this project bears the known benefits of decentralized ledger technology. This means that information is transmitted efficiently from the citation phase to the eventual execution of the insurance policy, as intermediaries who often demand high fees are eliminated.
Additionally, the integration of blockchain technology also facilitates the seamless distribution of funds to all players in the sector while preventing fraud and non-transparency in the process. Also, efficiency of operations is substantially improved as a result of replacing manual reporting with automated systems.
IBM's Project Input
Mike Smith, the regional manager of IBM, lauded the project, saying that it would lead to the establishment of an interoperable network that would significantly slash policy fees and improve customer care. Moreover, the solution lays a base for the integration of other nascent but vital technologies, such as artificial Intelligence.
On his part, the managing director for ANZ Paul Goodwin waxed lyrical on the upcoming platform. He stated that blockchain technology will revolutionize the existing systems, ensuring that they only capture relevant data. Consequently, the solution would be able to forecast payments, validate and execute them without the necessity of reconciliation. Goodwin noted that reconciliation is a cumbersome and time-consuming process, which is why there is need for a fast implementation of the new ANZ solution.
While many enterprises are still wary of embracing distributed ledger technology, ANZ has constantly showed it desire to participate in this inevitable revolution. Last year, the bank completed a project whose objective was to digitize the guarantee process for leasing of commercial property. Also, the firm partnered with Wells Fargo and Swift in 2016 to create a blockchain-driven payment solution that enables banks to reconcile transactions conducted over the Swift platform.