EY, Guardtime and other industry partners have launched the world’s first blockchain platform ‘insurwave’ to support the marine hull insurance sector.
Apart from EY and Guardtime, AP Møller-Maersk, Microsoft, as well as insurance industry leaders Willis Towers Watson, XL Catlin, MS Amlin and ACORD, are involved in the development of the platform.
Built by a joint venture of EY and Guardtime, insurwave employs blockchain and distributed ledger technologies from Microsoft Azure infrastructure and ACORD data standards.
The platform is designed to connect participants in a secure, private network with an accurate, immutable audit trail and services to implement various processes. It will ultimately help create a first-of-its-kind digital insurance value chain.
Insurwave is expected to help the global businesses to transform their risk management operations, as well as their relationships with brokers and (re)insurers.
In the first year of its operation, insurwave will support more than half a million automated ledger transactions and help manage risk for more than 1,000 commercial ships.
The platform is currently in use on a pilot basis across AP Moller – Maersk’s marine hull portfolio.
AP Møller-Maersk Risk and Insurance head Lars Henneberg said: “Our ambition is to drive the digital transformation of the transport and logistics industry and we see this platform as a testament to the value that can be extracted from streamlining areas of our industry that still rely on manual and often complex procedures.
“Operating around 350 owned container vessels across the world, marine insurance takes up considerable resources for us.
“Moving it to this platform is helping us automate manual processes and alleviate a range of inefficiencies and frictional costs in the way we have used to trade marine insurance.”
EY, Guardtime and Microsoft plan to introduce other types of business insurance for the marine cargo, global logistics, aviation and energy sectors in the future.