Published Oct 16, 2019 at 8:00 am
(Updated Oct 15, 2019 at 9:36 pm)
Blockchain technology is being used in a pioneering way in the pension risk transfer space by Bermudian-based Legal & General Re.
The reinsurance company, which has offices on Par-la-Ville Road, launched estua-re in the summer. It said it is the first pension risk transfer execution platform driven by blockchain technology.
Thomas Olunloyo, chief executive officer of Legal & General Reinsurance, said estua-re is the result of market leading innovation led by the Bermuda-based Legal & General Reinsurance team and an exciting milestone in the deployment of blockchain in the long-term reinsurance space.
He added: We believe that blockchain is uniquely suited to the long-term nature of annuities business as it allows data and transactions to be recorded and stored securely, in an unchangeable manner, for the lifetimes of these contracts which can last for over 50 years.
The combination with a smart contract allows this data to be used dynamically to automate every aspect of the contract. We are now starting the process of rolling out the platform to all our reinsurance clients, as we work closer with AWS on the implementation of this client focused solution.
The company said the platform is able to drive every step of the pension risk transfer reinsurance value chain, including pricing, claims handling, financial reporting and collateral, using data stored on the blockchain.
Benefits are said to include the ability to service customers in multiple markets and at lower long-term costs.
The Legal & General Re team developed estua-re using Amazon Web Services, including Amazon Managed Blockchain.
Rahul Pathak, general manager, Amazon Managed Blockchain at AWS, said: Its exciting to see how customers like Legal & General Reinsurance are using Amazon Managed Blockchain to create innovative products that allow multiple parties to work together in a trusted way, enabling them to simplify and speed up their systems and processes.
With Amazon Managed Blockchain, Legal & General Reinsurance can focus on building new business applications that enrich the experience for their customers and transform their business instead of dealing with the challenges of keeping a blockchain network up and running, all while taking advantage of the security and scalability the service offers.