AAIS and IBM to Transform Insurance Regulatory with Blockchain
AAIS (American Association of Insurance Services), has introduced the openIDL (open Insurance Data Link), built on IBM Blockchain, to help automate insurance regulatory reporting.
Using openIDL, AAIS will help streamline regulatory and compliance requirements while improving efficiency and accuracy for insurers and state insurance departments, ultimately benefiting the full industry, including policyholders.
AAIS is a not-for-profit advisory organization that consolidates and analyzes data to create loss reports and rating information for insurance carriers, also state insurance regulators. Insurance carrier data needs to be shared among multiple parties in a safe, secure manner. This is an ideal use of blockchain.
With openIDL, AAIS is updating an antiquated compliance process and pioneering an advanced method where insurers can contribute data directly onto a secure blockchain platform to satisfy state regulatory requirements. Data is stored on an immutable blockchain ledger where historical and current information is saved. Regulators are provided permissioned access to view only the information they need. Participating carriers will also be able to see their own data profile to understand how they compare to the market. Ultimately, the goal of the openIDL is to turn very expensive regulatory and compliance requirements into investments in operational efficiency and improved insights.
AAIS has established its own modern infrastructure and makes emerging technologies accessible to Members. Blockchain is ideally suited to large networks, such as the current AAIS membership base.
The AAIS openIDL is built on the IBM Blockchain Platform on the open source Hyperledger Fabric. Currently in pilot, several major insurers are in the process of being onboarded to the blockchain platform to provide regulatory reporting data.