Legal & General Reinsurance (L&G Re), the global reinsurance hub of the Legal & General Group, has announced the launch of estua-re, the first pension risk transfer (PRT) reinsurance platform to be powered by blockchain technology.
The platform is reportedly capable of driving every stage of the PRT reinsurance value chain, including pricing, claims handling, financial reporting and collateral.
It is designed to replace multiple processes and systems traditionally used to support each function, with the added security of blockchain technology.
estua-re was developed by the L&G Re team using Amazon Web Services (AWS), which allows for efficient management of the blockchain network.
Amazon Managed Blockchain ensures that multiple parties can transact with each other without needing an intermediary, and provides all members with a copy of the ledger database, providing greater transparency.
“‘estua-re’ is the result of market leading innovation led by the L&G Re team and an exciting milestone in the deployment of blockchain in the long term reinsurance space,” said Thomas Olunloyo, CEO of Legal & General Reinsurance.
“Using AWS we have been able to create a solution that addresses not only the greater speeds at which risks are transacted but also drives transparency and security in an increasingly interconnected market,” he explained.
“We believe that blockchain is uniquely suited to the long term nature of annuities business as it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years”
Rahul Pathak, General Manager, Amazon Managed Blockchain at AWS, also commented: “It’s exciting to see how customers like Legal & General Reinsurance are using Amazon Managed Blockchain to create innovative products that allow multiple parties to work together in a trusted way, enabling them to simplify and speed up their systems and processes.”
Pathak continued: “With Amazon Managed Blockchain, Legal & General Reinsurance can focus on building new business applications that enrich the experience for their customers and transform their business instead of dealing with the challenges of keeping a blockchain network up and running, all while taking advantage of the security and scalability the service offers.”