Marsh Insurance Broker Starts Utilizing a Blockchain Risk Exchange Placement Platform
World’s leading insurance broker and risk adviser, Marsh announced its piloting of Risk Exchange, a new digital placement platform powered by blockchain technology.
The concept came out of a hackathon, and Marsh Digital Labs developed it further. Marsh Digital Labs is a member of the Enterprise Ethereum Alliance. However, the Labs used Hyperledger Fabric for this project, the same technology used in another Marsh project for commercial proof of insurance. The client can see the placement process, and it’s clear when the risk is covered.
Sastry Durvasula, Chief Digital Officer of Marsh says:
“This is an important milestone in Marsh’s digital transformation and a great example of applying emerging tech to create value for our clients. Not only can clients experience a more organized, digitized placement process on the blockchain platform, but also one with greater transparency, security, and collaboration among all parties involved.”
Typically when insurance is placed, the process lacks transparency for clients. The client gives information to the broker, who then goes to the insurers. The carrier will provide a quote which the broker will feedback to the client. In the case of trade credit, the information that the insurer needs is about accounts receivables.
Nick Robson, Global Credit Specialties Leader, Marsh JLT Specialty says:
“Digital platforms powered by blockchain are ideally suited for organizations that either generate or finance large amounts of account receivables. By digitizing the invoices, payments, and other trade and insurance documents of the parties involved, we can streamline the trade credit insurance placement process, drive efficiencies, and improve the overall buying experience.”