Aon and Guy Carpenter have joined forces with The Institutes RiskStream Collaborative to leverage blockchain and DLT technology to streamline the reinsurance placement process.
The partners tested a proof of concept to digitally and securely distribute submissions and receive quotes using distributed ledger technology.
They conducted the test in collaboration with industry partners such as RenaissanceRe and Everest Re.
Built on RiskStream Collaborative’s Canopy framework, the project made use of ACORD data standards.
The project is now moving to the next phase of development through a RiskStream working group with member carriers, brokers and reinsurers invited to contribute.
In the next phase, the project will aim to digitise the reinsurance placement process with the overall goal of streamlining interactions within the reinsurance marketplace.
To achieve this goal, the partners will create secure digital methods and processes for cedants, brokers and reinsurers to manage treaties.
Aon’s Reinsurance Solutions business CIO Bob Olson said: “This is a very practical use case perfectly suited to a blockchain; multiple parties adding data, building upon the last until an agreed contract is formed through consensus.
“This shared single version of the truth brings immediate efficiency to the process while laying the foundation for further smart contract automation on downstream processes.”
Guy Carpenter chief information officer John Crichton said: “This project is an important first step in the path to improving transactional efficiency and creating value for our clients through blockchain.
“We believe an open platform that is supported by industry stakeholders will maximise adoption, which is so critical to the success of any new technology.”