International insurance broker Marsh has partnered with IBM to develop commercial blockchain solution that will allow companies to confirm that the contractor they are going to hire has the proper insurance coverage, you need to get started.
The decision will be created on the platform Hyperledger Fabric, managed blockchain of open-source using IBM Blockchain Platform, a cloud-based solution to develop blockchain-based applications, said in a statement Marsh dated April 16, 2018.
The organization of insurance ACORD standards will contribute to the project, and the company ISN Software Corporation, which delivers outsourced services and service suppliers will be the first client using the new solution.
Marsh strives to solve an important problem. Companies often hire contractors, vendors and other third parties to work or provide services, but before that they need to know that the contractor has adequate liability insurance that will cover emergency situation or where the work is done poorly. Typically, the client is requesting a certificate of insurance (COI), also known as the ACORD certificate, which is a document that reveals information about the relevance of insurance coverage of the client. However, such PDF or paper documents can be faked, they can be lost or corrupted.
The data in the blockchain is almost impossible to change. Providing proof of insurance on the blockchain, the parties who need them can believe what insurance coverage is important. In the company Marsh noted that their decision on the basis of the blockchain will allow customers to accelerate the implementation of the necessary business functions, such as hiring contractors and risk transfer.
«Marsh sees a great opportunity to use blockchain technology to improve the quality of service to our customers, maximize efficiency, and develop new opportunities in the value chain, insurance cost,» said the chief head of digital development Marsh sastri Durvasula (Sastry Durvasula).
Sandeep Patel (Sandip Patel), the General Manager of the insurance the direction of IBM, believes that the simplification of the verification process of insurance documents is a key factor in business. «This is a perfect example of how the blockchain can be used in a much broader scale to improve real business results,» he said.
Currently, the network is at the stage of pilot testing and it is expected that the project will enter commercial operation later this year. The ISN will be the first client of Marsh, who will test the solution by adding your policy contractors to the registry to check companies for employment purposes.
«The insurance industry depends on a paper certificate of insurance, which are filled manually as an insurance agent,» said Brett Parker (Brett Parker), technical insurance specialist at ISN. «Digitalizing information, we can optimize the process, saving our clients ‘time to focus on their core competencies».