Linux Foundation launches blockchain-based platform for insurance
The Linux Foundation, the non-profit technology consortium that supports the Linux operating system, is supporting a new blockchain-based project for the insurance industry.
On Monday, the foundation announced the launch of the Open Insurance Data Link platform, a project that aims to reduce insurance reporting costs and create a standardized repository for insurance data using distributed ledger technology.
OpenIDL is a joint initiative of the Linux Foundation and the American Association of Insurance Services, a national insurance advisory organization in the United States. The open source project brings together large global insurance companies such as The Hanover and Selective Insurance Group as well as technology and service providers such as MOBI, Chainyard and KatRisk to participate in a joint DLT platform for the exchange of data and business processes in the insurance industry.
Regulatory reporting in the property and casualty insurance industry is one of the key use cases for the OpenIDL network. Benefiting from the basic functions of the blockchain such as immutability and transparency, the platform is intended to ensure trust or guarantee to regulators and other participants in the insurance industry that the reporting data is correct and complete.
OpenIDL is part of the Linux Foundation’s open governance network model. This means that the network is based on nodes running by many different organizations connected by a shared distributed ledger. The Common Ledger provides an industry utility platform for recording transactions and automating business processes.
“Blockchain is a team sport and with the OpenIDL platform, companies, regulators and providers form an ecosystem to work together on common topics to improve the insurance industry. The entire industry will benefit from more accurate data and better decisions, ”said Isaac Kunkel, senior vice president of advisory services at Chainyard.