The Linux Foundation and a major US insurance association are jointly launching a blockchain platform to help the insurance industry.
The Linux Foundation, the non-profit technology consortium that supports the Linux operating system, is now funding a new blockchain project for the insurance industry.
On Monday quit the foundation is launching the Open Insurance Data Link platform. The project aims to reduce the costs of reporting insurance matters and create a standardized insurance data store using distributed ledger technology.
OpenIDL is a joint initiative of the Linux Foundation and the American Association of Insurance Services, a national insurance advisory organization in the United States. Large global insurance companies such as The Hanover and Selective Insurance Group as well as technology and service providers such as MOBI, Chainyard and KatRisk are participating in the open source project. They work together on a DLT platform for the shared use of data and business processes in the insurance industry.
Regulatory reporting in the property and casualty insurance industry is one of the most important use cases for the OpenIDL network. The platform benefits from the basic properties of the blockchain, such as immutability and transparency. The aim is to create trust and to guarantee the supervisory authorities and other participants in the insurance industry that the reporting data is correct and complete.
OpenIDL is operated within the framework of the Linux Foundation’s open control network model. The meansthat the network is built on nodes operated by many different organizations and connected by a common distributed ledger. The common ledger provides an industry platform for recording transactions and automating business processes.
“Blockchain is a team sport and with the OpenIDL platform, companies, regulators and providers form an ecosystem and can work together on issues in the insurance industry. The entire industry will benefit from more accurate data and better decision-making,” said Isaac Kunkel, Executive Vice President for advice at Chainyard.