US, Kenya, Singapore: AIG Completes Multinational Blockchain Insurance Test

American insurance giant AIG has made what appears to be its first foray into blockchain, completing a trial with Standard Chartered today.

AccessTimeIconJun 14, 2017 at 9:00 p.m. UTC
Updated Sep 11, 2021 at 1:27 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Insurance giant American International Group (AIG) and UK global bank Standard Chartered have completed a blockchain pilot designed to simplify some of the industry's most complicated insurance policies.

Built by IBM using the open-source Hyperledger Fabric protocol, the pilot revealed today tested a commercial insurance master policy written out of London and applied to local policies in the US, Kenya and Singapore.

By moving the policy from the traditional system where each counterparty would hold its own records to a self-executing smart contract written on the Fabric blockchain, the pilot reportedly showed how real-time visibility into the insurance coverage could allow recipients to be automatically notified following an insurable event.

Rob Schimek, CEO of Commercial at AIG, said in a statement:

"Our pilot proves blockchain has a powerful role to play in the future of insurance."

The multinational commercial insurance risk transfer was also notable for granting additional stakeholders (including brokers and auditors) credentials designed to show them only what they needed for their individual roles in the coverage plan.

According to the statement, the pilot recorded and tracked events that could trigger the payment of a policy, while ensuring that no single party was able to change the terms of coverage "without the consensus from others on the network".

The pilot jurisdictions were selected because they each represented different traits of a potential market. Specifically, the US market was selected for its size and complexity; Singapore was identified as a possible growth market for Standard Chartered; and Kenya was chosen for its unusual regulatory requirements around dispersals.

While London-based Standard Chartered has long been a leader in the blockchain sector, most recently announcing plans to launch a cross border payments platform powered by blockchain, this is one of AIG’s first public forays into the industry.

Over the past few months, insurance has become a heated space for blockchain innovation, with three new firms joining the blockchain insurance consortium B3i and Shanghai Insurance Exchange and nine other partners completing a test focused on this application.

Ultimately, project participants were optimistic about the test and what it hints at for this blockchain use case going forward.

The general manager of IBM Blockchain, Marie Wieck, said in a statement:

"There is tremendous opportunity to apply advancements in blockchain technology to transform the insurance industry."

AIG image via Flickr


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.