The American Association of Insurance Services (AAIS) is leveraging blockchain technology from IBM to automate regulatory reporting.
The national not-for-profit insurance advisor has introduced the openIDL (open Insurance Data Link), which is built on IBM Blockchain. Using openIDL, AAIS said it will help streamline regulatory and compliance requirements while improving efficiency and accuracy for both insurers and state insurance departments.
AAIS consolidates and analyzes data to create loss reports and rating information for insurance carriers, as well as state insurance regulators. AS insurance carrier data needs to be shared among multiple parties in a safe, secure manner, the orgainsiton has turned to blockchain as the answer.
CEO Ed Kelly said: “We recognised the potential for blockchain to streamline the regulatory reporting process for our Member carriers, as well as the opportunity to improve security, accessibility and accuracy of data for regulators.”
With openIDL, AAIS enables insurers to contribute data directly onto a secure blockchain platform to satisfy state regulatory requirements.
Data is stored on an immutable blockchain ledger where historical and current information is recorded. Regulators are provided permissioned access to view only the information they need. Participating carriers will also be able to see their own data profile to understand how they compare to the market.
Built on the IBM Blockchain Platform on the open source Hyperledger Fabric, openIDL is currently in pilot, with several major insurers in the process of being onboarded.
Sandip Patel, general manager, IBM Global Insurance Industry. “While the initial phase of the openIDL focuses on data sharing and regulatory reporting, the open platform provides a foundation for even broader innovation and new applications in the future, while providing full privacy and confidentiality protection among parties.”
Earlier this year, IBM further expanded into RegTech by launching a suite of cognitive solutions to help financial institution professionals manage their regulatory and fiduciary responsibilities. Powered by Watson software, it is designed to help financial professionals understand regulatory requirements, deliver increased insight into potential financial crimes, and managing financial risk with a new architectural approach for data.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
