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PwC creates blockchain prototype for London Market
Written by staff reporter
PwC has created a working blockchain prototype for the London Market Target Operating Model (TOM) Innovation Exchange. The project is aimed at exploring the degree to which blockchain technology can reduce costs and speed up the payment process in the specialist insurance market.
Completed over a six-week period, the proof of concept focuses on enhancing interactions between multiple different London Market parties involved in a claims process (TPAs, claims approvers and brokers). The proof of concept was developed by PwC’s blockchain team in Belfast, which comprises 25 blockchain engineers. The automated process includes claim creation, supporting documents, invoice creation and approval or rejection of invoices and demonstrates how blockchain can make interaction between multiple parties in the claims process more efficient.
As part of the trial, various parties were given different roles and permissions to view data. Smart contracts were used to automatically approve claims which met pre-agreed conditions, resulting in reduced administrative costs and burdens as well as faster claims approval and payment. With rules in place that all parties have agreed, certain claims approvals can occur automatically.
PwC says blockchain technology, which consists of ‘blocks’ of data in a digital ledger, is highly resistant to malicious tampering, thus offering significant security advantages to governments, banks, insurers and the financial services sector.
Commenting on the results of the proof of concept, Steve Webb, financial services blockchain leader at PwC, said: “This proof of concept demonstrates the potential for efficiency and the elimination of error and duplicated information. It shows how blockchain can reduce costs and speed up the claims process in the London Market, allowing experts to focus on more value-add complex claims.”