Maersk is one of the world’s largest shipping companies and it too is making great strides in the cryptocurrency and blockchain industry. Its latest move is establishing a blockchain platform for marine insurance, called Insurwave. The venture is a joint one between Guardtime and Ernst & Young, an accounting firm.
In addition to being used by Maersk, other companies are adopting its methods as well, including Willis Towerson Watson, MS Amlin, and XL Catlin. Such widespread adoption means that company can experience blockchain technology by ACORD standards.
Simplifying marine insurance.
— Maersk (@Maersk) May 25, 2018
The platform provides users automated access. According to Lars Henneberg, the head of risk and insurance for AP Moller-Maersk, stated that moving the platform promotes the automation of the manual process and reduces the inefficiencies for the company, which currently owns 350 container vessels worldwide.
The technology is posed to manage and reduce risk for more than 1,000 vessels and it will support over 500,000 transactions even during the first year of operation.
Alastair Swift, the CEO of Willis Towers Watson, stated that blockchain technology may be the revolutionizing catalyst for insurance. The first insurance transaction performed on the blockchain has done wonders, such as streamlining the transactional process and creating value for the company’s clients.
Further, the policies may go through an automatic update process that reflect risk away by use if IoT and smart contracts, at least according to Martin Henely, the chief information officer of XL Catlin. Catlin is set to start working on making the platform available to other segments of insurance.
According to Todd Mcdonald, the head of partnerships and co-founder at the R3 blockchain conglomerate, stated on the R3 website that Insurwave may change the industry entirely, especially through the deployment of R3 Corda software. The software is not available on Microsoft’s Azure Platform.
Mcdonald also mentioned that Insurwave promotes connections between clients, brokers, insurers, and third-parties to distributed common ledgers for the integration if risk, identity, and exposure data. Further, the software is designed to link data that comes form multiple parties to policy contracts and its blockchain is able to receive and respond to information that result in a business process of a price change.
The system is also able to record information about assets and transactions and it can validate notification and loss data. Essentially, the main advantages of this system are that it can lower costs, increase sales, and promote compliance with rules.
Better yet, all parties involved are able to view in real-time the condition, safety, and location of the assets that are being transported. This ensures better pricing and underwriting and even delivery. Those who participate will also reap operational savings through an improvement use of claims processing, risks, and policy.
Ultimately, the product is one that makes it easier for international shippers to provide accurate and high-quality services and to reduce the risks involved with the shipping process. Those who are interested in learning about the latest developments can do so through the company’s website.