Not-for-profit insurance advisory organisation AAIS is to launch its new openIDL (open Insurance Data Link) product on the public cloud service platform, IBM Blockchain.
Designed to help automate insurance regulatory reporting, openIDL hopes to leverage the decentralised, fast and paperless nature of blockchain to turn expensive regulatory and compliance requirements into investments in operational efficiency and improved insights.
“We recognised the potential for blockchain to streamline the regulatory reporting process for our Member carriers, as well as the opportunity to improve security, accessibility and accuracy of data for regulators,” explained AAIS Chief Executive Ed Kelly.
The AAIS openIDL is built on the IBM Blockchain platform on the open source Hyperledger Fabric. Currently in pilot, several major insurers are in the process of being onboarded to the blockchain platform to provide regulatory reporting data.
AAIS serves as the openIDL administrator, providing unbiased governance for the blockchain platform within existing insurance regulatory frameworks. AAIS Members may participate in the openIDL blockchain as part of their existing or new Program Affiliations.
“Simplifying the process for insurance reporting using blockchain will create dynamic shifts in efficiency and provide the industry with new insights that will even benefit consumers,” said Sandip Patel, General Manager, IBM Global Insurance Industry.
“Hyperledger Fabric’s support for private and confidential transactions allows insurers to share data with the network, knowing that they own their data and have control over who has access to it.”
“While the initial phase of the openIDL focuses on data sharing and regulatory reporting, the open platform provides a foundation for even broader innovation and new applications in the future, while providing full privacy and confidentiality protection among parties,” added Patel.