Two working groups are using a blockchain and a new collaboration platform to introduce the insurance industry to the idea of sharing data to develop new solutions. The Linux Foundation is developing this service in partnership with the American Association of Insurance Services.
The Open Insurance Data Link platform will reduce the cost of regulatory reporting for insurance carriers, provide a standardized data repository for analytics and a connection point for third parties to deliver new applications to members, according to the foundation. The foundation announced the new project on Monday, April 12 and describes the project as the “first open blockchain platform that enables the efficient, secure and permissioned-based collection and sharing of statistical data.”
“From the very beginning, we recognized the enormous transformative potential for openIDL and distributed ledger technology,” AIS CEO Ed Kelly said in a press release. “We are happy to work with the Linux Foundation to help affect meaningful, positive change for the insurance ecosystem.”
openIDL is also collaborating on joint software development including Hyperledger Fabric, Hadoop, Node.js, MongoDB and other open technologies to implement a “harmonized data store,” that will allow data privacy and accountable operations.
openIDL is part of the foundation’s open governance network which includes nodes run by numerous organizations and connected by a shared distributed ledger that provides a platform for recording transactions and automating business processes. The network uses open source code and community governance for objective transparency and accountability among participants.
Mike Dolan, senior vice president and general manager of projects at the Linux Foundation, said in a press release that the organization is excited to host this work.
“Open governance networks like openIDL can now accelerate innovation and development of new product and service offerings for insurance providers and their customers,” he said.
Other partners include The Hanover Insurance Group, Travelers, The Hartford and technology and service providers Chainyard, KatRisk and MOBI.
Two working groups are using the platform: one focused on floods and the other on property and casualty regulatory reporting. The flood group is developing solutions to evaluate and respond to the U.S. flood risk while the other group is developing solutions to make regulatory reporting more transparent while still protecting proprietary information.
According to the press release, all software source code developed will be licensed under an OSI-approved open source license, and all interface specifications developed will be published under an open specification license. Also, technical discussions between participants will take place publicly with the goal of expanding the network to include other participants.