British insurer Legal & General (L&G) Group has introduced a pension risk transfer (PRT) reinsurance platform based on blockchain technology.
Dubbed estua-re, the platform uses data stored on the blockchain. It can drive every stage of the PRT reinsurance value chain such as pricing, claims handling, financial reporting and collateral.
Developed by the L&G Re team using Amazon Web Services (AWS), the platform will replace multiple processes and systems conventionally used to support each function.
Amazon Managed Blockchain provided by Amazon Web Services ensures that multiple parties can transact with each other without requiring an intermediary. It offers all members with a copy of the ledger database, ensuring greater transparency.
Legal & General Re CEO Thomas Olunloyo said: “‘estua-re’ is the result of market leading innovation led by the L&G Re team and an exciting milestone in the deployment of blockchain in the long term reinsurance space.
“Using AWS we have been able to create a solution that addresses not only the greater speeds at which risks are transacted but also drives transparency and security in an increasingly interconnected market.
“We believe that blockchain is uniquely suited to the long term nature of annuities business as it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years.”
Legal & General Re operates as s the global reinsurance hub of the L&G Group and acts as the vehicle for writing PRT business outside of the UK and US.