The Linux Foundation and the American Association of Insurance Services (AAIS) have teamed up to create a platform for insurance carriers using distributed ledger technology (DLT).
According to a press release on Monday, the Open Insurance Data Link (openIDL) platform seeks to provide a standardized data repository to ease regulatory reporting and reduce costs associated.
The move will aim to propel a common distributed ledger for sharing information and business processes within the insurance environment. Alongside cutting costs, the project aims to provide a “connection point” for third parties to deliver applications to its members, according to the release.
Some of the world’s largest insurance companies including The Hanover and Selective Insurance Group as well as technology and service providers Chainyard, KatRisk and MOBI will also be involved, the foundation said.
The foundation said the project’s first use case will tackle regulatory reporting within the Property and Casualty (P&C) insurance industry also known as general insurance. Sectors beyond P&C are expected to be supported “in the coming months.”