R3, the financial technology, distributed ledger and blockchain consortium, have joined forces with ACORD (Association for Cooperative Operations Research and Development) to launch a Centre of Excellence for distributed ledger technology (DLT) for the global insurance industry.
R3 has major insurers including MetLife, AIA and Suncorp Group, as well as other financial services companies that have their own insurance groups. R3 has also been active in Bermuda, targeting reinsurance companies to join its consortium. ACORD is a non-profit that provides the global re/insurance industry with data standards and implementation solutions.
The distributed ledger technology Centre of Excellence will offer a hub for R3’s members and ACORD’s members to research, experiment and design applications that improve the efficiency of insurance and reinsurance processes, such as claims handling and data management.
Distributed ledger and blockchain technology has been estimated to be offer major cost savings to insurers and reinsurers and the majority of companies in the sector are now aware of the benefits and investigating, or actively developing, potential working solutions.
David Rutter, CEO of R3, commented; “R3 is building distributed ledger technology for use across the financial services industry, of which the insurance sector is a key component. There is huge potential for insurers to leverage this technology to overhaul outdated systems used for processes such as premium payments and claims handling. We have been steadily growing our member base in this sector, and our partnership with ACORD will now provide these institutions and the industry as a whole with the tools and network to foster knowledge sharing and experimentation.”
Bill Pieroni, President and CEO at ACORD, added; “We are excited to partner with R3 to create the DLT Centre of Excellence for the global insurance industry. It gives ACORD’s members the opportunity to learn from other financial sectors, leveraging the knowledge to reduce time, cost, and risk associated with proof-of-concepts and pilots. Likewise, the work carried out by ACORD and R3 will benefit R3’s member base as a whole. ACORD looks forward to working together to strategically position the industry for change.”
Marty Lippert, Executive Vice President and head of Global Technology & Operations at MetLife, also said; “The partnership between ACORD and R3 to create a Centre of Excellence for insurers and reinsurers will expedite innovation and establish global standards for distributed ledger technology across the insurance industry. MetLife looks forward to expanding its strong relationships with both ACORD and R3 and contributing to the efforts of the new Centre of Excellence.”