Vermont Government Launches a Blockchain Insurance Pilot Program
Vermont has recently launched a blockchain pilot project for captive insurance. The information was released in an official announcement on January 11.
The Office of the Vermont Secretary of State and the Vermont Department of Financial Regulation signed an agreement to explore blockchain technology and the benefits related to it to maintain records in the captive insurance field.
With this trial program, captive insurers in the state will be able to file registration and other reporting documents using blockchain technology. The main difference with the technology used behind Bitcoin and other digital assets is that this network will be private, allowing customers to preserve their privacy.
Vermont is trying to record transactions using the blockchain and reduce the costs of traditional record-keeping methods. Currently, the state has a copy of filed documents in a digital and paper version.
The Request for Information aims at identifying potential collaborators to launch this new pilot program. According to Secretary Condos, the pilot will allow state authorities to examine if the implementation of distributed ledger technology (DLT) to store files can improve the aspects of the regulatory process in the State.
After Bermuda and the Cayman Islands, Vermont is a global leader in captive insurance for companies. Indeed, the industry plays a really important role in its economy. There are different states that are using blockchain technology.
Wyoming has also presented blockchain-friendly bills to improve blockchain’s situation in the State. In other counties, regulations are spreading regarding DLT. There are different countries trying to improve their presence in the blockchain market attracting new companies and firms.