Thai Reinsurance Public launched Insurer Network that using IBM’s blockchain technology on its cloud
According to information from IBM Corp, Thai Reinsurance Public Co. Ltd. launched the Insurer Network through the use of the IBM blockchain on its cloud. More specifically, Insurer Network is a reinsurance smart contract production network, while Thai Reinsurance Public Co. Ltd. is a technology-driven professional nonlife reinsurer.
Thai Re launches reinsurance platform Insurer Network powered by IBM blockchain and smart contracts
One of the reasons driving this development was the global pandemic Coronavirus. In particular, the insurance industry is also significantly disrupted, not in the hospitality field. For example, business restrictions in Thailand caused by COVID-19 have increased the need for insurance companies to improve efficiency, reduce errors, and lower costs.
Thai Re Chief Executive Oran Vongsuraphichet stated:
“The COVID-19 pandemic and the need to digitally transform have urged organizations, not only in the insurance industry but all, to bring efficiency to the way we work. Thai Re has continuously focused on prudent underwriting professional portfolio management as well as business innovation throughout the past 40 years of our operations.”
This new network uses a distributed ledger blockchain to securely cryptographically secure information between multiple parties to create a tamper-proof historical record of insurance documents. Since the full ledger is shared between multiple parties and protected by cryptography, it reduces copy errors and is extremely difficult to tamper with, thus reducing the chances of fraud. Blockchain is also programmable, allowing the ability to create so-called smart contracts between parties. The contracts may hold the deposit and transfer it when certain conditions are met.
Reinsurance is the practice whereby multiple insurers agree to take on a portion of a larger risk portfolio in an agreement to split up the total payout for an insurance obligation. When connected to a smart contract, this means when the condition is met – for example, a claim is made – the smart contract uses the blockchain to pull already allocated currency to pay the obligation from the connected accounts.
So, what is the mission of blockchain? Thanks to blockchain, every stakeholder can be more certain that all involved members can meet their obligations and that there is no fraud involved in reinsurance contract creation thanks to the blockchain’s anti-tamper.
Through the launch of the Insurer Network platform on IBM Cloud, Thai Re believes the company can streamline the way it handles over 10,000 annual reinsurance contracts with insurance partners and help insurance companies. business development easier.
Pojaman Fuangaromya, executive vice president of Thai Re said:
“Our goal is to make this platform beneficial to Thailand’s insurance industry while also serving the need of consumers. We plan to invite almost 100% of all insurers and brokers in Thailand to leverage this Insurer Network blockchain-based smart contract platform within the next two years.”
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