May 21, 2019 13:30
The reinsurance division ofAon and Guy Carpenter have entered into a partnership with the technology firm The Institutes RiskStream to digitize their transactions in order to ” improve the efficiency of the process of placement of reinsurance risks “.
Using a system registry distributed, of whose forms is the chain of blocks (blockchain), reinsurers will be able to enjoy a simplified flow and better data verification, in particular, in order to reduce costs through the market.
The tests carried out
The companies, with RenaissanceRe and Everest Re, have tested the registry distributed to send and receive bids. The tests proved a success, according to them.
“There has been a lot of noise around the blockchain in our sector, but little results to this day. It is a case of use very handy, perfectly adapted for a blockchain ; several parties were added to the data, building on the last until the formation of a contract agreed by consensus. This unique version shared of the truth brings immediate efficiency to the process while laying the groundwork for an intelligent automation contracts for the downstream processes, ” said Bob Olson, the chief information officer for the reinsurance division of Aon.
The next phase of development
Aon and Guy Carpenter say that the project is now in its next phase of development, entrusted to a team of RiskStream made up of representatives of insurers, brokers and reinsurers. The companies specify that the next phase has the goal of ” digital placement of reinsurance risks with the overall aim to improve the interaction between the reinsurance market by creating methods of numerical structure to the transferors, brokers and reinsurers to be able to manage the treaties “.
Although the reinsurance sector has managed to implement ecosystem digital, there is still work to do for the scanning of the transactional part of the process, support Aon and Guy Carpenter.
“The technology of the big book distributed can potentially reduce costs, simplify processes, and increase the security of the data in all the areas of risk management, and reinsurance, in particular, will benefit greatly from this technology,” says Christopher McDaniel, president of RiskStream. The best solution for the market and for the buyers of reinsurance is to build an efficient solution to the sides of brokers, reinsurers, and insurers. Each has a vital role to play and the DLT can make an efficient for all participants. “