French reinsurance giant SCOR has been working on testing a blockchain based proof-of-concept for digitalising certain reinsurance market processes with start-up ChainThat.
As the insurance technology (InsurTech) trend continues to accelerate, the majority of major reinsurance firms have been involved in testing blockchain technology (the distributed ledger style database that underpins crypto currencies including BitCoin) to ascertain how it can make their business processes more efficient.
Reinsurer SCOR has not yet been named in relation to any blockchain concept work, until now when the Ruschlikon initiative revealed that the firm has been working with re/insurance focused blockchain start-up ChainThat.
Rushlikon, which is a global association of insurers, brokers and reinsurers that focuses on implementing e-administration technologies in order to modernise the market, said it has been investigating new technologies that can improve administration processes in re/insurance.
Specifically, SCOR and ChainThat have developed a proof-of-concept for exchanging reinsurance accounts between brokers and reinsurers using blockchain technology.
Just this week consultancy Accenture suggested that investment banks could save as much as $12 billion a year on their infrastructure costs by 2025 through blockchain adoption. Santander had previously suggested that the banking industry could save as much as $20 billion annually by 2022.
In reinsurance, consultancy PwC said that blockchain technology could represent a cost saving opportunity of up to $10 billion.
Compelling figures. For a reinsurance industry that is facing change, disruption and an evolution of business models, embracing InsurTech and technologies such as blockchain offer a chance to increase efficiency, which ultimately can lower costs, reduce transactional friction, enhance returns, and make capacity and capital usage more effective.
Regis Delayat, chair of the Ruschlikon group and Senior Digital Advisor to the Chairman of SCOR, commented; “Ruschlikon is strengthening its footprint in all regions of the global (re)insurance market and is already achieving its two objectives: to increase exchanges within the community and to expand the community itself. Ruschlikon also plays a leadership role in terms of adopting innovation designed to optimize straight-through-processing and benefits for our member companies.”
