A U.K. insurer has impassion a concerned to Amazon’s services to launch what it claims is the first blockchain system for bulk pension deals.
According to a Reuters cover Wednesday, Legal & General, a U.K.based multinational financial services company, has said it will use Amazon Web Services’ (AWS) coped blockchain system to manage and record bulk annuities for its insurance business.
Bulk annuities are defined benefit shelves schemes sold by companies to insurers to mitigate risks to policy holders and to free themselves from the cost load.
For now, AWS’ blockchain platform will be used for Legal & General’s bulk annuity business outside the U.K. and the U.S., although it may be expanded to comprehend those markets down the road, a spokesperson for the firm told Reuters.
Thomas Olunloyo, CEO of Legal & General Reinsurance, interpreted that blockchain tech suits the long-term nature of annuities, as contracts can last over 50 years. Blockchain gives the related data and transactions “to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these engages,” he said.
Insurance is a growing use case for blockchain, with firms in the space increasingly eyeing the tech for its potential transparency and effectiveness gains.
In December, U.S. insurance group State Farm launched a trial of a blockchain solution to streamline the manual activity of subrogation – the legal right for companies to pursue damages from a third-party responsible for causing a loss to the insured levee.
And a group of insurance companies completed a blockchain trial in China this spring that investigated the security and traceability high points of blockchain, partly as a means to help to solve credibility issues facing insurance firms in the country.
The same month, maven services firm Accenture and Italian insurance group Generali launched a live blockchain solution aimed to streamline Generali’s Staff member Benefits Network offerings, including insurance cover for life, disability, accident and healthcare.
AWS’ managed blockchain serving came out of preview mode in early May, allowing clients to start using it to build solutions. The firm said at the heyday the service allows users to create a blockchain network “in minutes,” as well as managing certificates, inviting new members and ratio out peer node capacity to speed up transaction processing.
AWS image via Shutterstock