Allianz has successfully trialed a new blockchain prototype for a global “captive” insurance program that includes cash transfer between countries.
Captive or self- insurance programs, according to Allianz, are the most complicated areas of commercial insurance, as they are established by multinational organizations which self-insure instead of purchasing insurance, and can cover multiple jurisdictions. The firm’s prototype aims to provide a more streamlined approach for captive policies.
Blockchain technology connects the multiple parties involved in the captive insurance program from the management to local subsidiaries and fronting insurer, and creates a faster, more secure and transparent means of distributing information, conducting business processing and recording transactions across multiple parties.
The prototype’s results prove that blockchain technology can greatly improve the efficiency of corporate insurance transactions internationally.
Citi Treasury and Trade Solutions provided the payment processing services related to Allianz’s blockchain prototype, which used the Hyperledger Fabric 1.0 software, released by the Linux Foundation-backed consortium of enterprises.
Allianz Global Corporate & Specialty SE Board Member Hartmut Mai stated “We are currently seeing many blockchain applications in the financial services industry and we are eager to explore the potential of this exciting technology in the corporate insurance segment.”