London Insurance Organization Launches New Project to Study Applications of Blockchain and Smart Contracts in Wholesale Insurance Industry

A London-based insurance and reinsurance industry group has launched a new blockchain research project.

The London Market Group (LMG), which counts Germany’s Allianz, American International Group (AIG) and Britain’s Lloyd’s as members, said it would study the use of smart contracts and blockchain in the wholesale insurance industry.

The organization is currently working with research institute Z/Yen on the project, which is said to aim to “explore the potential benefits that smart contracts can bring to the insurance industry.”

Justin Emrich, CIO of insurance company Atrium Underwriters, said:

There has been a lot of hype over blockchain and smart contracts in recent years. They are described in the tech world as the ‘next big thing’. So, we partnered with Z/Yen to gain a deeper understanding of the potential applications of these technologies in the wholesale insurance industry.

The research project comes at a time when the insurance industry is facing a period of modernization, and LMG plans to publish a report detailing its findings before the end of the year.

In addition, LMG also plans to issue multiple blockchain technology reports to provide guidance materials on the technology to organization members.

A few weeks ago, five major European insurers announced the formation of a blockchain alliance to jointly develop specific use cases of the technology. They are trying to understand whether blockchain technology can completely change the way the insurance industry operates. In general, the entire reinsurance industry is exploring potential use cases for the technology, while also promoting the development of related startups.

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