As distributed management technology continues to appear as a potentially feasible tool for the insurance industry, users need to come up with a set of common deployment and deployment rules, industry leaders say.
The only way to facilitate the exchange of information between companies over business practices "is to have a common set of data and information," says Bijesh Jacob, Technical Director of ACORD, the Association for Cooperation Research and Development, a global organization with offices in New York and London, and the ACORD Solutions Group in Pearl River, New York.
Developing standards means determining "what is it" on the blockchain, according to Christopher G. McDaniel, president of the Institute RiskBlock Alliance, based in Malvern, Pennsylvania.
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The group's approximately 100 participants have met several times and have mostly been involved in "level setting," according to Mr McDaniel. "To get to the end, where we want to go, we must create subgroups," he said.
"Standards are extremely important," says Ryan Rugg, global insurance manager at R3CEV in New York, developing CORDA's technology platform chosen by both RiskBlock and B3i in Zurich, another industrial consortium focused on the development of distributed conductor technology.
"A policy cannot be recorded in CORDA until all parties agree on the terms, so you need a set of standards to strengthen this process," says Rugg. Such standards include "how the policy is written, how transactions are to be implemented." 19659002] An important goal of ACORD is to ensure that such standards are agnostic, "expandable for any technology platform," says Malou August, vice president of standards and membership of the ACORD in the Pearl River.
Standards should help enable movement of data on technologies and platforms, says Jacob.
In the beginning, the standard group looks at file structures for writing data and political information on blockchain, "McDaniel said." Can we get a standardized structure that everyone can agree on? "
In 2019, the group begins with policy information, claim information, and reinsurance information if time permits, "McDaniel says. "Next year, we want to start looking at interface standards," to standardize how blockchain connects to back office systems.
There is a standard development process that involves the insurance industry through ACORD's membership and involves a technical assessment, a business assessment and a regulatory assessment, said Mrs August.
ACORD standards are widely used in the insurance industry, according to Ms. Rugg. "The majority of insurance companies use ACORD standards," she said.
R3 has been working with ACORD since 2017 to implement some basic standards in CORDA, "but mostly standards are developed by end users and embedded in the applications," says Rugg.
"I believe (standards) will help accelerate implementation and deployment," Rugg said.
An important question will be to detail what information is actually recorded on the shared size, sources said.
"The only thing that needs to be on blockchain is data that needs to be shared," McDaniel says. The rest can be taken in from the back office, he added.