Allianz is one of the many companies banking on blockchain technology. The global insurance provider has high hopes for DLT in different regards. Right now, they are pioneering a prototype for the captive insurance markets. This program also focuses on transferring cash between countries. A major breakthrough for blockchain as a whole. It will be interesting to see what Allianz has planned for the future.
This new Allianz prototype has been trialed successfully. It came to be thanks to a partnership with Ernst & Young. Having a blockchain advisory service provider on board is always a smart idea. Ginetta is also involved in bringing this captive insurance market prototype to fruition. The payment processing is handled by Citi Treasury and Trade Solutions. All of this shows building a blockchain prototype is not easy by any means.
A Smart Ploy By Allianz and Partners
Captive insurance programs are pretty complex these days. With multinational organizations involved, things only get more complex over time. Every multinational has its own self-insurance program where selected assets are pooled together. They collect premiums from operating companies and ensure claims are paid out accordingly. In some cases, the insured assets add up to hundreds of millions of Dollars. Handling this industry with care and transparency is of the utmost importance.
AGCS Board Member Hartmut Mai comments as follows:
“We are currently seeing many blockchain applications in the financial services industry and we are eager to explore the potential of this exciting technology in the corporate insurance segment. The captive blockchain prototype is one further example of our commitment to leverage new technologies and drive innovation in insurance.”
With the blockchain, parties involved in the captive insurance industry are connected automatically. Moreover, all network participants share the same information processed by the network. Both transactions and data entries will be recorded and distributed in real-time. Faster, more transparency, and more efficient ways of distributing information will help the industry enter the 21st century. Under the hood, this Allianz framework uses Hyperledger Fabric 1.0.
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