International insurance broker Marsh is working with companies like IBM to develop a blockchain-based insurance verification platform.
Also involved in the project are insurance non-profit ACORD Corporation and ISN Software Corp., according to Monday's announcement. Together, the companies are developing the platform – which will help streamline the process by which companies can verify that a contractor has the insurance they claim to possess – using the Hyperledger Fabric code as well as IBM's Blockchain Platform.
The permissioned blockchain built within the platform allows only certain parties to gain access to data in real-time, according to the release. The ledger replaces a manual, paper-based system which the company currently relies on, with the new system allowing for certain parts of the verification certificate to populate in real time in a bid to save time and money.
"Marsh sees great opportunity in leveraging blockchain technology to better serve our clients by maximizing efficiency and creating new opportunities in the insurance value chain,” Sastry Durvasula, Marsh's chief digital officer and chief data and analytics officer, said in a statement.
The platform is currently being developed in a pilot stage, according to Marsh. The broker – which made nearly $2 billion in profits in 2016, according to available figures – said it expects to launch a production version later this year. Those efforts will be fueled by the input received from ACORD as well as feedback from ISN, according to Monday's release.
"IBM is committed to connecting emerging blockchain networks to facilitate the next generation economy. This is an ideal example of how blockchain can be used on a much broader scale to drive real business results," Sandip Patel, general manager of IBM's insurance division, said of the pilot.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.