A U.K. insurer known as L&G insurance Company turns to Amazon blockchain services as the launch the first Blockchain system for bulk pension deals.
According to a Reuters report Wednesday, The Legal & General, a U.K.based multinational financial services company on Wednesday has said it will use Amazon Web Services’ (AWS) managed blockchain system to manage, process and record bulk annuities for its insurance business.
Bulk annuities is one the insurance policies .The are benefit pensions schemes sold by companies to insurers to mitigate risks to policy holders and to free themselves from the cost burden.
A spokesperson for the firm told Reuters that AWS’ blockchain will be used for legal and general’s (L &G) bulk annuity business outside the U.K. and U.S for now, though it may still extend it’s operations to include those markets down the road.
Since contracts can last over 50 years with this model of Annuity, Thomas Olunloyo, CEO of Legal & General Reinsurance, explained that blockchain technology is good and suits the long-term nature of annuity plan.
The related data and transactions to be signed, recorded and maintained and managed in a permanent and secure nature over the lifetime of these contracts will be achieved through Blockchain system,” he said.
The blockchain’s potential transparency and efficiency gains has made it a sort after for firms who are increasing showing interest in the technology. Overtime the Insurance company has not hidden their huge interest as the have been a growing use case for blockchain.
A trial of a blockchain solution to streamline the manual process of subrogation was launch in December by U.S. insurance group State Farm –Subrogation involves the legal right for companies to pursue damages from a third-party who happens to be the one responsible for causing a loss to the insured party.
Further more , in China this period where a group of insurance companies did a blockchain trial which they completed the security and traceability features of blockchain, which is partly as a means to help to solve credibility issues facing insurance firms in the country.
Again, same month, professional services firm Accenture and Italian insurance group ‘Generali’ launched a live blockchain solution which aimed to streamline Generali’s Employee Benefits Network offerings, including insurance cover for life, disability, accident and healthcare as contained in insurance policy plan.
Early in May, AWS’ managed blockchain service came out of preview mode giving clients the leaverage to start using it to build solutions. Users can now create a blockchain network “in minutes,” inviting new members, managing certificates, and scaling out peer node capacity to speed up transaction processing , the firm said.
Credit: Daniel PalmerJOIN OUR COMMUNITY