‘Big four’ accounting house EY, technology giant Microsoft and the Maersk, the world’s largest shipping company have combined to launch the world’s first marine insurance blockchain platform.
Build using Microsoft’s Azure cloud platform, the blockchain solution is the first of its kind in the marine insurance industry and connects clients, brokers, insurers and third parties on a common ledger. This shared database also collects information about logistics risks and shipments to integrate the data with insurance contracts.
The 400-year-old marine insurance sector is among the most inefficient areas of the global insurance industry, according to EY’s global insurance leader Shaun Crawford. Shipping companies pay some $30 billion in premiums annually, according to Reuters.
“Insurance transactions are currently far too tedious and frictional,” stated Maersk head of risk of insurance Lars Henneberg. “The distance between risk and capital is simply too far. Blockchain technology has the potential to facilitate the desired development that is long overdue.”
The blockchain platform will address challenges of different facets of a complex international ecosystem including long paper chains, high transaction volumes and reconciliation levels, according to Crawford.