Tokio Marine & Nichido Fire Insurance and NTT DATA Corporation have announced that the two companies have started a proof of concept for applying Blockchain technology to insurance policies.
They plan to digitalize insurance policies for marine cargo insurance, distribute them on Blockchain, and examine the security, cost efficiency and practical applicability including its operational efficiency. The POC includes digitalization of insurance policies onto the Blockchain, and inclusion of information of Letter of credit and Bill of lading on the Blockchain in the insurance policies. By replacing the conventional paper-based exchange method with the Blockchain network, NTT DATA expects that the time and labor cost for transactions will be significantly reduced. NTT DATA plans to publish the result of this POC, as well.
In import and export, insurance policies are exchanged from exporters to importers and circulated internationally through different parties of interest such as banks. However, the exchanges are mainly paper-based, which creates time-loss due to the paper transfer and risk for misplacement of documents.
Tokio Marine & Nichido Fire Insurance has been researching Blockchain based insurance policies, and has decided to test them in the area of marine cargo insurance by collaborating with NTT DATA, who have been researching the application of Blockchain in all over the international trade process.
In order to use Blockchain technology commercially, it is required to digitalize related documents other than insurance policies, as well. Therefore, collaboration of the respective parties is required to realize the application of Blockchain in this area. Through this POC, NTT DATA will solve the challenges amongst the respective parties and take steps towards the commercialization of Blockchain in import and export trade.
