The Blockchain technology is making life simple for its users as companies are taking advantage to simplify and create better customer user experience and access. Tech company, IBM in a partnership with New Zealand’s largest bank ANZ, has successfully developed a blockchain solution that will serve as a ‘single source of truth’ for insurance companies and brokers.
A successful proof of concept using blockchain technology has been successfully tested by the Australian and New Zealand Banking Group (ANZ). The testing was to ensure that data transfers are more efficient with faster, more transparent payment reconciliation between brokers and insurers in the insurance industry.
The solution which focuses on improving existing inefficiencies of a complicated reconciliation process wherein an individual’s payments toward an insurance company are made through a broker who sold the insurance product.
IBM’s enterprise blockchain software, Using the Hyperledger Fabric, the proof-of-concept successfully demonstrated the use of decentralized technology was delivered in three different stages, according to a white paper released by the bank.
The first saw the efficient transfer of data in the entire process from quoting to issuing an insurance policy while removing the need for authorizing and reconciliations at various stages.
Secondly, bulk payments were automatically allocated from brokers to insurers down to the level of individual policies.
Thirdly, the inefficient process of manual reporting was completely removed with automated reporting to help with insights.
IBM New Zealand managing director Mike Smith added:
“The result is an interoperable network that could not only decrease policy costs and improve customer service, but also build a foundation for the introduction of other transformative technologies, such as artificial intelligence.”
‘The experience of running a distributed ledger solution within New Zealand considering new tools for our customers’ problems has given us great insight into the process,’ ANZ said in its white paper.
In addition, an automated payment process solution was also integrated on the blockchain, provided by ANZ, to enable straightforward bulk payments that are immutably recorded and tracked on the ledger. The first-of-its-kind proof-of-concept solution in New Zealand saw the core blockchain and product developed in-house in New Zealand, according to ANZ.
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