Allianz test the Blockchain
The insurance company Allianz announced today its use of blockchain smart contracts to manage catastrophe swaps and bonds, which allow users to prevent losses in front of large -scale disasters.
Anyway it could also happen that insurers and investors money could drag on for a few months after the catastrophe.
But thanks to smart contracts the time could be reduced in a few hours, according to an Allianz spokeperson.
In fact, this test – done thanks to a partnership with Nephila company – showed that transactions can be “significantly accelerated and simplified”; it also demonstrated that it could help the increase of marketability for swaps and the growth of opportunities where it is possibile to use blockchain-based smart contracts.
Chief underwriting officer
Richard Boyd explained to
Coindesk:
“Blockchain technology will increase reliability, controllability and speed for both cat swaps and cat bonds because less manual processing, authentication and verification is needed through intermediaries to confirm the legitimacy of payments and transactions to and from the investors.”
He added:
“By replacing manual operations, which are currently embedded across the entire process, delays and the risks of human error are ruled out”.
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