Named The Institutes RiskBlock Alliance, it is “the result of the Institute’s efforts to facilitate collaboration across more than 30 organizations representing various segments of [the insurance] industry,” according to the announcement. The consortium will focus on developing use cases for blockchain technology as they can be applied to proof of insurance, subrogation, data sharing and risk registries, and parametric insurance.
Experts in the fields of risk management and insurance will convene with blockchain developers in order to discover and evaluate use cases. Deloitte Consulting has provided collaborative expertise and The Institutes expressed confidence in its ability to facilitate the consortium, describing itself as “well-positioned.”
Peter L. Miller, president and CEO of The Institutes, stressed the necessity for facets of the industry to work together in concert.
“The risk management and insurance industry is faced with an increasingly fast moving, innovative and data-driven environment,” said Miller. “Insurers have varying levels of knowledge about blockchain, and the key to making this technology work in our industry is ensuring that members work together. This is why The Institutes have formed the consortium.”
According to The Institute, “blockchain technology holds significant potential for the risk management and insurance industry.” Policyholders will be better served by insurers that can leverage more efficient payment systems for claim premiums and fraud reduction as tools in their customer service repertoire.
Moving forward, The Institutes said that educating the industry about blockchain technology will remain a focal point of its continuing effort.