Munich re tests, together with four other leading companies of the Blockchain technology.
(photo: Reuters)
FrankfurtThe “Blockchain”-encryption technology could revolutionise the way in which the global insurance industry. Five leading European insurers and reinsurers want to try, therefore, in a joint Initiative, whether and how the technology in the practical use, for example for the automation of processes. “The Blockchain has enormous potential, of digital contracts and transactions between multiple parties to ensure, in a transparent and verifiable to execute,” said Munich re on Wednesday. The Blockchain acts like a virtual cash book, the transactions in the financial sector directly between two parties can be settled.
The new “Blockchain Insurance Industry Initiative” (B3i) in addition to the world’s largest reinsurer, Munich re, Allianz, Swiss Re, Zurich, and the Dutch Aegon. It is a matter of “to set the necessary Standards for effective digitization of the industry,” said Harald Rosenberger, Munich re, responsible for innovations. The Initiative was, therefore, also for other insurers.
With the technology of the expenses for the management, administration and documentation of contracts between insurers and their customers, but also with reinsurers could significantly reduce. This could reduce the cost drastically and increase the efficiency. So an earthquake of a certain strength could automatically trigger a payment from the reinsurer to the primary insurer, a portion of the earthquake risk is passed. But that is future music. Previously, such uniform minimum standards for the exchange of data necessary. The five insurers want to test in the pilot project, first of all, whether and how transactions within the industry, with Blockchain.
