IBM’s Hyperledger Fabric has the potential to reimagine the business of insurance by revolutionizing the foundation that powers this industry, trust. IBM blockchain holds the key to unlocking a framework which will radically transform the insurance sphere by enabling faster verifiable data exchanges in a tamper-proof environment where information is visible for every party involved. The highly dynamic insurance industry involves multi-party operations between parties that do not necessarily trust each other. The advantage of blockchain technology is that it enables multiple parties to interact with each other in a cohesive environment that removes data congestion and friction points. Through its distributed architecture, blockchain empowers each actor involved in insurance processes by giving them access and ownership to their own records. In an industry plagued by inconsistent data and contradictory claims, a system which records and automatically updates information which can later be compared against other records can significantly cut down management costs for policies, enhance customer satisfaction by reducing settlement times and streamline the overall flow across the chain of operations.
IBM underlines through an insurance BCDB case study that Hyperledger Fabric can unlock new layers of transparency and build business opportunities. IBM points out that blockchain technology can facilitate complex insurance programs and streamline legal and regulatory adherence across multiple countries. With respect to this issue, IBM blockchain partnered with AIG and Standard Chartered to reshape a number of policies into smart contracts that facilitate a real-time, cohesive view of documentation and data policy. IBM also harnessed the shared ledger capabilities of its blockchain platform to aggregate records from multiple companies with the goal of streamlining claims recovery. In an industry where opacity can act as a major hindrance, IBM Hyperledger guarantees contract certainty and enhances risk handling capabilities by ensuring transparency across the reinsurance value chain, which eliminates the need for companies to periodically reconcile reinsurance accounts.