British insurance company to use Amazon blockchain to manage insurance business
Founded in 1836 and headquartered in the UK, Legal & General is a multinational financial services company and the second largest investment management company in Europe.
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According to a report, it is reported that Legal & General (L&G) will be using Amazon Web Services (AWS) blockchain system to manage and record its "bulk annuities" insurance business, aiming to reduce risks for policyholders and eliminate costs. "Bulk annuities" are insurance policies purchased by trustees of pension schemes to better protect users by removing the risks of lifespan, interest rate, and inflation from the pension scheme.
A spokesperson for the company stated:
AWS's blockchain platform is currently operational in markets outside the UK and the US, although there may be plans to expand to the US and UK markets in the future.
Amazon Web Services (AWS) is a cloud computing platform that provides various remote web services and has been in operation since July 2002, serving other websites and client-side services. By July 2007, Amazon claimed to have 330,000 developers who had logged into the service.
Legal & General's CEO, Thomas Olunloyo, commented on the collaboration:
Blockchain technology suits the long-term nature of annuities, allowing relevant data and transactions to be "signed, recorded, and maintained in a permanent and secure manner for the duration of these contracts," potentially protecting contracts for up to 50 years.
AWS's managed blockchain service exited its trial mode in early May, allowing customers to start using it to build solutions. The company stated at the time that the service enables users to "create a blockchain network in minutes" and manage certificates, invite new members, and scale peer node capacity to accelerate transaction processing.
The insurance industry is evidently a growing use case for blockchain, with companies in this sector increasingly focusing on the technology's potential for transparency and efficiency improvements.
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