Maersk Pilots the First Marine Insurance Blockchain Platform
AP Moller-Maersk (Maersk) has started piloting a blockchain-based insurance platform for the global shipping industry. Announced on Friday, the technology is now live in commercial use.
Ernst & Young and software company Guardtime developed the blockchain platform called Insurwave. The platform uses distributed ledger technology from cloud platform Microsoft Azure. ACQRD data standards are global standards setting body for the insurance market. They also power the platform to help business transform the risk management process.
Further, Insurwave is set to support more than half a million automated ledger transaction within its 1st year. It will also manage risk for more than 1,000 commercial vessels.
The platform links all participants in a secure, private network with accurate and fixed and irrefutable audit trail. Meaning, it will establish the first digital insurance value chain.
Additionally, the platform aims to increase service quality for clients and improve risk and claims governance.
Further, Maersk participated in the development of the platform. It ran the system as a pilot client on their marine hull portfolio.
“Our ambition is to drive the digital transformation of the transport and logistics industry and we see this platform as a testament to the value that can be extracted from streamlining areas of our industry that still rely on manual and often complex procedures,” said Lars Henneberg, head of Risk and Insurance at Maersk.
“Operating around 350 owned container vessels across the world, marine insurance takes up considerable resources for us,” he added.
“Moving it to this platform is helping us automate manual processes and alleviate a range of inefficiencies and frictional costs in the way we have used to trade marine insurance.”
EY, Guardtime, and Microsoft to expand the platform
Willis Towers Watson, XL Catlin, and MS Amlin are now commercially using the Insurwave platform.
“We are delighted to be at the forefront of blockchain technology which has the potential to revolutionize the insurance industry,” said Alastair Swift, CEO of Willis Towers Watson. “This is the first insurance transaction that has been undertaken through blockchain, simplifying and streamlining the transactional process and creating added value for our clients.”
However, EY, Guardtime, and Microsoft plan to expand the platform to include marine cargo, global logistics, aviation, and energy sectors.
“The first phase of Insurwave rollout is focused on marine insurance, and EY, Guardtime, and Microsoft plan to roll it out to other types of business insurance for the marine cargo, global logistics, aviation and energy sectors,” said Shaun Crawford, EY Global Insurance Leader.
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