IBM creates a "smart" insurance policy based on blockchain

On June 14, 2017, the financial conglomerate American International Group (AIG) announced the development of a "smart" insurance policy based on blockchain technology. The company's partner in this project is IBM, and the customer is the large Standard Chartered Bank.

By mid-June 2017, AIG and IBM had completed the pilot phase of developing a so-called "smart" contract for an international insurance contract, using distributed registry technology that enabled Standard Chartered to establish real-time data transfer between head office in the UK and branches in the US, Singapore and Kenya.

IBM creates a "smart" insurance policy based on blockchain

Reuters notes that major banks, investment companies and various financial institutions have invested millions of dollars in blockchain, hoping it will help make transactions faster, easier and safer. IBM has partnered with some leading companies from various industries to build blockchain products designed to optimize complex international deals. International insurance is often problematic due to confusion with the rules, documents and terms of payment in various countries.

A lot is changing there. Everything goes through a chain of emails around the world instead of a centralized system, says AIG Multinational President Carol Barton.

The blockchain systems developed by IBM and AIG allow companies, their divisions, insurance agents and other parties to simultaneously exchange all data and documents related to insurance, as well as notify them of payments.

IBM notes that all Standard Chartered insurance coverage areas have their own difficulties for testing the technology. For example, in Kenya, policyholders must make payments under insurance contracts immediately after the client's request and only then begin to issue papers and consider the insured event.^[1]

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