US-headquartered professional services company Cognizant and a consortium of leading Indian life insurers have developed a blockchain solution to facilitate cross-company datasharing. This will enable the insurers to reduce the risk of data breaches, fraud and moneylaundering, while delivering superior experience to customers through improved process efficiency, better record keeping, and accelerated turnaround time.
The insurers include 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 Star Union Dai-ichi Life Insurance.
Developed late last year as part of a collaborative blockchain program, the solution is among the consortium's first distributed ledger initiatives.
The solution will help these insurers reduce their reliance on data intermediaries and aggregators in obtaining customer and policy details for a wide range of critical purposes, such as know-your-customer due diligence, nancial and medical underwriting, risk assessment, fraud detection, and regulatory compliance. In addition to ensuring real-time availability, transparency and consistency of records that can be audited at any time with easy traceability, storing data on blockchain will enable participating insurers to reduce operating costs, avoid duplication of procedures, and streamline approvals.
Mr Anand Pejawar, President — Operations, IT & International Business, SBI Life, said, "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."
Mr V Viswanand, COO of Max Life Insurance, said, "The shared infrastructure provided by the distributed ledger, smart contracts and non-repudiation capabilities of blockchain can dramatically enhance the insurance value chain, and pave the way to greater automation in requesting, exchanging and entering data. The partnership between our consortium and Cognizant is a signicant step forward in leveraging the long-term strategic benefits of the technology and turning better customer experience into a competitive advantage."