Marsh announced it is collaborating with IBM, ACORD and its client, ISN, to develop a commercial blockchain solution for proof of insurance.
By using blockchain, or distributed ledger technology, Marsh said the certificate of insurance process will be transformed “from complicated and manual to streamlined and transparent, allowing clients to speed up necessary business functions such as hiring contractors and transferring risk while increasing coverage certainty.”
Blockchain is ideally suited to large networks of partners because it establishes a shared, immutable record of all the transactions that take place within a network and then enables permissioned parties access to trusted data in real-time, Marsh explained in a statement.
Built on the open source Hyperledger Fabric technology and IBM Blockchain Platform, Marsh is developing the commercial proof of insurance solution in conjunction with IBM, with input from ACORD, and customer feedback from ISN.
Currently being tested, Marsh’s new blockchain network is expected to go into production later this year.
Dallas, Texas-based ISN, a global specialist in contractor and supplier information management, is the first Marsh client to pilot the solution.
“Marsh sees great opportunity in leveraging blockchain technology to better serve our clients by maximizing efficiency and creating new opportunities in the insurance value chain,” said Sastry Durvasula, chief digital officer and chief data and analytics officer, Marsh. “We believe strategic engagements such as this one with IBM, ACORD, and ISN will help accelerate the adoption of further blockchain applications benefiting our clients across industries.”
“Vastly simplifying the process for providing proof of insurance is a key enabler of business. IBM is committed to connecting emerging blockchain networks to facilitate the next generation economy. This is an ideal example of how blockchain can be used on a much broader scale to drive real business results,” said Sandip Patel, general manager, insurance industry, IBM.
“The insurance industry has been dependent on paper certificates of insurance, manually populated by an insurance agent,” said Brett Parker, technical insurance lead, ISN. “By digitizing the policy information, we can streamline the process saving our customers time to focus on their core competencies.”
Bill Pieroni, president and CEO of ACORD, added: “This blockchain solution is key to evolving standards, enhancing data leverage, and enabling state-of-the-market technology to better integrate ACORD members and foster innovation.
ACORD (Association for Cooperative Operations Research and Development) is the global standards-setting body for the insurance and related financial services industries.
Source: Marsh