Allianz Pioneers Blockchain Prototype For The Captive Insurance Market


Allianz Pioneers Blockchain Prototype For The Captive Insurance Market

Successful implementation of  a blockchain prototype for an existing global captive insurance program of a client has been achieved by Allianz Global Corporate & Specialty (AGCS)
This prototype illustrates how international insurance transactions can be significantly hastened and simplified or made easy.
Main functions include cash payments, real-time access of tracked information and an intuitive, convenient user interface.

AGCS line of business involves,  Allianz Risk Transfer cooperated with EY, Ginetta and Citi Treasury and Trade Solutions

ART has joined forces with Citi Treasury and Trade Solutions which provided the payment processing services related to Allianz’s blockchain prototype.

with cash transfer between countries, Allianz Global Corporate & Specialty SE (AGCS) has successfully trialed blockchain technology for a global ‘captive’ insurance program including. AGCS’ Allianz Risk Transfer (ART) line of business has together teamed up with EY (Ernst & Young) as blockchain advisory service provider and digital agency Ginetta to successfully create a blockchain prototype solution for the already existing captive insurance program of a long-standing ART customer with global reach.

The results prove that blockchain technology can greatly and immensely improve the efficiency of corporate insurance transactions internationally through this blockchain prototype

ART is poised to driving home more  new technologies and innovations in insurance. “with captive blockchain prototype as  one further example of our commitment “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 world”, explains AGCS Board Member Hartmut Mai.

They Captive insurance programs were established by multinational organizations which self-insure instead of purchasing insurance. It is one of the most complex areas when it comes to commercial insurance

Each program was administered by Allianz partners with the captive owner. using the insurer’s international network in 210 countries and territories to fully comply with local regulations. These captives may cover over 120 countries and hundreds of millions of dollars of assets insured. been a “fronting insurer” .

With Blockchain technology, all parties involved in the captive insurance program – the captive management, local subsidiaries, and the fronting insurer automatically connects without strings of middlemen.

Blockchain is a distributed ledger which is shared among a network of participants ( peer to peer) and can record transactions and data entries. Any updates or changes to the data are shared in real-time across all users. This creates a much faster, transparent, secure and efficient means of distributing information, conducting business processing and recording transactions across multiple parties.

Real-time transparency, accelerated growth 

For a captive insurance program with local subsidiaries in the US, China, and Switzerland. The Allianz captive insurance blockchain prototype, built on the Blockchain framework Hyperledger focuses on two types of insurance policies – Professional Indemnity and Property plan.

The prototype looks at three common process flows in the captive insurance cycle – annual policy renewals, Semi annual policy renewals, premium payments and claims submission and settlement.

With the distributed ledge environment pattern, the length of time for the processing of policy from start to settlement of the claim was reduced.

The process of “captive insurance blockchain prototype ” demonstrates that regular transactions and cash transfer between fronting insurers and clients can be significantly accelerated and simplified”, says Yann Krattiger, Principal at ART. “the Automated process can also reduce the time used by way of replacing the thousands of emails and heavy data files. Clients still enjoy increased speed and each process can be tracked, making it more transparent and reliable.

Clients can now have a deeper understanding of the process.EY project Manager Isabelle Brom says thus:” the captive insurance blockchain prototype is the main example of EY’s approach on partnering with our clients on the innovation. The decentralization and distribution, speed and reliability in d transformation of the insurance company with the use of Hyperledger Fabric Composer toolset will make the insurance process to be fast, reliable, trackable and flexible as well, thus, changing the face of insurance and creating new business ideas.

Enabling money transfer

With the help of Citiconnect Application Programme Interface(API) solution, payments are accepted and processed from Allianz’s captive insurance blockchain prototype, also Citi Treasury and Trade solutions. The application allows Allianz to communicate directly with Citi for all monitory transaction such as US dollars and extending into more markets within Citi global networks. It was indeed a big achievement for Citi to have given  Allianz help to achieve that great innovation in the insurance industry. A new phase of the insurance

Tapodyuti Bose, Global Head of Channel, Enterprise and Account Services, Citi Treasury and Trade Solutions said that by  leveraging innovative, new technologies such as Allianz’s blockchain prototype and CitiConnect® API, that their company were able to partner to create new business  models and ideas which was implemented fast within a couple of weeks.

A simple method, convenient, user interface

The process has been made easy and reliable with the new blockchain technology. The digital agency Ginetta designed the intuitive, convenient user interface that incorporates the requirements of ART and its captive client. The major clients or stakeholders around the world can now through real-time information, conveniently track the progress and also the process of captive insurance management which has been redefined, simplified and reviewed with their friendly and simpler user interface.

Allianz’s captive insurance blockchain prototype, Allianz SE is part of the B3i initiative, the Blockchain Insurance Industry Initiative, which recently launched a reinsurance blockchain prototype. Before their partnership with Nephila capital limited, ART has tested successfully the blockchain technology as they were able to spearhead the use of blockchain technology for transacting a natural catastrophe swap.

when partnering up with Nephila Capital Limited, ART has already successfully tested blockchain technology as the successfully piloted the use of blockchain technology for transacting a natural catastrophe swap. In addition, Allianz SE is part of the B3i initiative, the Blockchain Insurance Industry Initiative, which recently launched a reinsurance blockchain prototype. A good fit and milestone achievement in the insurance industry.



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