Aon's reinsurance business and Guy Carpenter have entered into a partnership with The Institutes RiskStream Collaborative to streamline the reinsurance placement process through the use of distributed ledger technology.

Along with industry partners including RenaissanceRe and Everest Re, the group has successfully tested a proof of concept to digitally and securely distribute submissions and receive quotes using distributed ledger technology. The project was built on RiskStream Collaborative’s Canopy framework and made extensive use of ACORD data standards.

The project is now moving to the next phase of development through a RiskStream working group with member carriers, brokers and reinsurers invited to contribute. The intent of the next phase is to digitise the reinsurance placement process with the overall goal of streamlining interactions within the reinsurance marketplace by creating secure digital methods and processes for cedants, brokers and reinsurers to manage treaties.

“There has been tremendous hype around blockchain in our industry, but few results to date. This is a very practical use case perfectly suited to a blockchain; multiple parties adding data, building upon the last until an agreed contract is formed through consensus. This shared single version of the truth brings immediate efficiency to the process while laying the foundation for further smart contract automation on downstream processes,” said Bob Olson, CIO of Aon’s Reinsurance Solutions business.

“This project is an important first step in the path to improving transactional efficiency and creating value for our clients through blockchain,” said John Crichton, chief information officer of Guy Carpenter. “We believe an open platform that is supported by industry stakeholders will maximise adoption, which is so critical to the success of any new technology.”

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