More and more large enterprises and companies are adopting blockchain technology at the enterprise level and exploring the possibility of issuing their own tokens. Recently, the multinational insurance group Allianz announced that it is in the "advanced stages" of developing a token ecosystem.
According to a report from
BeInCrypto, Allianz is working on establishing a global insurance payment network centered around its own token. A spokesperson for the company stated:
"We are exploring blockchain technology to simplify and accelerate cross-border insurance payments for corporate clients. The system will support 'a variety of different types of payments'. The core infrastructure has been developed and tested, and the next step will be to pilot fund transfers in a limited setting and complete testing within a short period."
Allianz AGCS, Allianz Global Corporate and Specialty SE, currently generates an annual revenue of 130.5 billion euros, making it the world's largest insurance company. Its subsidiaries
Allianz Global Investors and
Allianz Real Estate collectively hold around 1.9 trillion euros in assets.
Allianz has not disclosed many details about the "internal token" but claims it will serve many global branches of multinational companies and operate on a private blockchain built by blockchain firm
Adjoint. Allianz currently describes the project as being in a "pilot phase," but the fundamentals have been established.
This is not Allianz Group's first foray into blockchain technology. Its Indian branch
Bajaj Allianz General Insurance collaborated with Travel Ezee in 2017 to develop a system based on blockchain that utilized smart contracts to enable real-time settlement of flight delays triggering the system. Claims payouts were transferred to customers' bank accounts within minutes.
Allianz aims to bring this customer-centric approach into its ecosystem, hoping to develop more demand-driven insurance products by the end of the year. This move by Allianz also demonstrates how blockchain technology is spreading like a virus in the financial and insurance industries.
Interestingly, Andreas Utermann, CEO of
Allianz Global Investors, expressed his views during a meeting on December 25 last year with Andrew Bailey, CEO of the UK Financial Conduct Authority (FCA), stating:
"Regulators should ban cryptocurrencies. The severe downturn in the crypto market has caused many to lose their assets, and I am surprised that regulators have not taken any action, as these cryptocurrencies have no intrinsic value."
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