Indian Life Insurance companies will now utilise blockchain solutions developed by IT services giant Cognizant to facilitate data sharing among companies.
Blockchain will also help the companies to lower the risk of data breaches, fraud and money-laundering, and will also better efficiency, record-keeping and faster turnaround time.
SBI Life Insurance, Max Life Insurance, Canara HSBC OBC Life Insurance, Edelweiss Tokio Life, IDBI Federal Life Insurance, Birla Sun Life Insurance, HDFC Life, Kotak Life, Tata AIA Life, PNB MetLife, IndiaFirst Life Insurance, ICICI Prudential Life Insurance, Bharti AXA, Aegon Life, and SUD (Star Union Dai-ichi) Life Insurance will make use of this new solution.
“Blockchain has the potential to catalyse a significant shift in the insurance industry’s underlying technology and business models. With its model of immutable and decentralised data, and its ability to prevent tampered documents and false billings from falling through the cracks, blockchain can enable insurance providers to introduce new models, reinvent processes, and increase capacity,” said Anand Pejawar, President — Operations, IT and International Business, SBI Life.
Based on Corda, the technology enable insurers to reduce their dependence on data aggregators and intermediaries, which often makes them vulnerable to attacks and breaches.