The Paypers, an online news outlet, reports that the American Association of Insurance Services (AAIS) has launched an insurance database and reporting tool that is based on blockchain technology. The association seeks to accomplish the move through a partnership with IBM (NYSE:IBM) on whose platform the insurance database and reporting tool will be developed.
Per the reports, AAIS made the announcement via a video posted on August 15. The privately held insurance advisory has called the platform Open Insurance Data Link (openIDL). The platform will be hosted on IBM’s enterprise blockchain solution using Hyperledger Fabric.
Holistic and dynamic reporting
The insurance advisory collects and analyses market data to create loss reports and to provide loss reports for insurance firms as well as government agencies responsible for regulating the insurance space.
The openIDL aims to “to streamline regulatory and compliance requirements while improving efficiency and accuracy.” According to the shared information, the platform will also enable AAIS to update the obsolescent compliance process, and in the process enabling insurers to contribute data on a secure blockchain platform to satisfy state regulatory requirements.
Thanks to the property of the immutability of a blockchain database, the data stored on the distributed ledgers will be secure. Historical and current information will be recorded on the platform. To access the database, regulators will be provided with permissioned access to view only the information they need. Meanwhile, the insurance providers on the platform will be able to view their own data profile that will help them track their performance and how they compare to their rivals in the market.
According to a statement by Ed Kelly, AAIS’s CEO, the association acknowledges the potential for blockchain to streamline the regulatory reporting process and in the process to encourage a holistic and dynamic reporting practice.
IBM Global Insurance Industry
On the other hand, IBM has a lot of experience in the insurance industry whereby it has been greatly involved with many industry players in helping enable the adoption of new technologies. The company also has hands on experience, through the IBM Global Insurance Industry.