L&G launches world’s first blockchain reinsurance platform
Legal & General Group announced the launch of estua-re, the first pension risk transfer execution platform driven by blockchain technology. It is a single ecosystem capable of driving every stage of the PRT reinsurance value chain including pricing, claims handling, financial reporting and collateral, utilizing data dynamically stored on the blockchain.
It will replace multiple processes and systems traditionally used to support each function, with the added security of blockchain technology. estua-re enables L&G to provide service to customers in multiple markets, efficiently and at lower long term costs, redefining the way long term life reinsurance business is sold and managed, with these benefits flowing to the individual pensioners whose long term financial security we guarantee via reinsurance. L&G Re clients will be gradually moved to support provided on this platform.
The L&G Re team developed ‘estua-re’ using Amazon Web Services (AWS), which has a blockchain offering. With Amazon Managed Blockchain, multiple parties can transact with each other without needing an intermediary. All members maintain a copy of the ledger database, providing greater transparency. Also, manual reconciliation can be replaced with smart contracts, making the process much more efficient.
Thomas Olunloyo, CEO of Legal & General Reinsurance said: “We believe that blockchain is uniquely suited to the long term nature of annuities business as it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years.”
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