Blockchain Insurance Solution In New Zealand By ANZ & IBM
ANZ, New Zealand’s largest bank, with tech partner IBM, has effectively developed a blockchain solution that will be a ‘single source of truth’ for insurance companies and brokers.
The Banking Group of Australia and New Zealand (ANZ) has completed a effective proof of the concept using blockchain technology to make data and information transfers more rational with faster and more obvious reconciliation of payments between brokers and insurers in the insurance sector.
The resolution, developed in conjunction with a major New Zealand insurance provider Suncorp, is designed to improve the existing inefficiency of a sophisticated reconciliation process in which the payments of the individual to the insurance company are made through a broker who implemented the insurance product.
Applying Hyperledger Fabric, the IBM’s enterprise blockchain software, the proof of the concept successfully displayed the use of decentralized technology in three focus areas, according to white paper issued by the bank.
Firstly, the effective transmission of data throughout the process from citation to delivery of the insurance policy was provided while eliminating the need for authorization and reconciliation at various stages.
Secondly, mass payments were automatically distributed from brokers to insurers up to the level of individual policies.
Thirdly, the inefficient manual reporting process was completely removed using automated reporting to help with understanding.
Mike Smith, IBM New Zealand managing director added:
“The result is an interoperable network that could not only decrease policy costs and improve customer service, but also build a foundation for the introduction of other transformative technologies, such as artificial intelligence.”
In addition, the blockchain solution also integrated the automated payment process provided by ANZ to provide direct bulk payments that are accurately recorded and tracked in the book. The first of its kind proof of the solution concept in New Zealand saw the main blockage and product developed in a house in New Zealand, and confirmed it.