Cognizant and a consortium of major Indian life insurers have developed a blockchain platform to facilitate cross-company data-sharing.
The platform is designed to enable insurers reduce the risk of data breaches, fraud and money-laundering.
The platform will also help insurers to improve process efficiency, better record-keeping, and accelerated turnaround time.
The consortium comprises 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.
The blockchain platform, which was developed late last year as part of a collaborative programme undertaken by the consortium, is built on Corda – a distributed ledger platform developed by R3 and hosted on Microsoft’s Azure infrastructure.
The solution is expected to enable insurers lessen their dependence on data intermediaries and aggregators in obtaining customer and policy details for a wide range of critical purposes.
Indian insurance firms currently gather customer and policy information for different purposes like KYC-related due diligence, financial and medical underwriting, risk assessment, fraud detection, and regulatory compliance.
SBI Life president of operations, IT & International Business Anand Pejawar said: “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. We are pleased to be a part of this path-breaking consortium of Indian life insurers and collaborate with Cognizant on driving distributed ledger innovations of tomorrow.”
Cognizant global delivery head for insurance Arun Baid said: “As a shared source of truth, blockchain opens numerous possibilities for insurers to collaborate more effectively and transparently, make better informed decisions, and create greater trust and accountability, while disintermediating data aggregators.
“Our comprehensive blockchain and domain capabilities built over the years have made us a trusted advisor for insurance companies to realize distributed ledger’s full potential. We are proud to be a part of the consortium’s vision to create a more secure, streamlined ecosystem that can accommodate disruptive business models of tomorrow.”