Accountancy and consulting firm Deloitte will in the coming months help the insurance blockchain consortium, The Institutes RiskBlock Alliance, expand its solutions into Canada.
RiskBlock Alliance is a U.S based consortium representing 31 risk management and insurance companies, such as State Farm, Liberty Mutual, GEICO, Nationwide, USAA, Chubb, and Travelers. It was formed to promote and contribute to the implementation of blockchain technology in the insurance industry. The consortium is preparing to launch blockchain-based applications, including a proof of insurance application, which is “the first notice of loss data-sharing process and a smart-contract enabled subrogation tool.” The subrogation tool, which Deloitte will build, utilizes smart contracts to facilitate the netting of members’ payments and improve the efficiency of claims processing payment and accounting.
Insurance Blockchain Consortium Expansion
In this project, Deloitte will leverage its industry-leading capabilities to help the insurance blockchain consortium implement and test multiple products that will be brought to market by the end of the year. Deloitte will also help RiskBlock expand into Canada, the first step of a planned international expansion, by integrating operations into the existing frameworks for regulation and compliance in Canada. Under the strategic support of Deloitte, the consortium seeks to establish a legal entity in Canada and begin working with Canadian-based property-casualty and life/annuity insurance providers. This expansion will help RiskBlock achieve its ultimate goal of providing scalable blockchain solutions across the global insurance industry.
The Canopy Framework
Under the terms of engagement, Deloitte has pledged to handle the development, methodology, and prioritization of key blockchain applications being developed by the consortium. These applications will be designed to address various aspects of insurance transactions lifecycle from underwriting to claims processing and compensation. New applications will be provided by R3 Corda platform, Canopy. Canopy is an end-to-end reusable blockchain framework being built exclusively for RiskBlock Alliance. It is designed to enhance efficiency and to lower transactions costs for insurance policyholders.
The idea behind the Canopy framework is a set of standardized blockchain networks which means there’s one policy blockchain and one claims blockchain that all other blockchains or applications in the framework can use. This also means that insurance companies can create solutions that plug into the ecosystem. Additionally, it enables carriers to develop proprietary applications that use the policy blockchain and share data amongst themselves.
Linda Pawczuk, a principal and financial services blockchain leader at Deloitte Consulting LLP said:
“Our goal matches The Institutes’ own expectations—the platform will serve as the home base for all things insurtech for the global insurance industry in the years ahead.”
Deloitte’s collaboration with RiskBlock comes after the accountancy firm published a report revealing that blockchain technology continues to gain unprecedented appeal with executives across diverse industries. According to the survey, 74% of the responding executives said they believed that blockchain has “a compelling business case” for use, with 34% outlining that their company was already working on deploying some form of blockchain technology.
In the insurance industry, distributed ledgers are being touted to improve efficiency in the property and casualty insurance, increase interoperability in the health insurance ecosystem, and help eliminate fraud. The insurance industry could greatly benefit from the RiskBlock’s blockchain solution once it becomes readily available.