Blockchain will build on the trust in the insurance industry, according to Carol Barton of AIG.
Speaking at the blockchain and distributed ledger technology session at the Vermont Captive Insurance Association (VCIA) 2018 Annual Conference, Barton discussed the impact that the new technology could have on the insurance industry.
She said: “As we think about captives, fronting and multinational programmes there is a lot of potential there for blockchain.”
“Insurance is an industry that is based on trust, and blockchain is a way to build on that trust.”
Barton referred to the first multinational programme delivered via blockchain, between AIG, IBM and Standard Chartered, as a case study.
According to Barton, the case study showed that blockchain had helped with operational simplification, regulatory efficiency, and liquidity and capital.
In addition, it had helped reduce counterparty risk, clearing and settlement time and had minimised fraud.
Barton concluded: “I think right now and in the next three to five years as we move into a blockchain digitally-enabled environment the strategic opportunity is about operational efficiency.”