Blockchain scheme delivers marine insurance claims benefits

An example of blockchain technology in use. Credit: Getty Images
An example of blockchain technology in use. Credit: Getty Images

A leading Japanese insurer has announced that it has successfully piloted a new blockchain solution for cargo risks.

Tokio Marine & Nichido Fire Insurance and partner tech company NTT DATA said the trial had been completed and would dramatically reduce the time for claims to be paid.

The companies said in a statement, “During the process of filing a marine cargo claim, overseas claims settling agents should collect the necessary claims documents in paper form or PDF files, such as the damage report or photography of damaged cargo and related trading documents including the invoice and insurance Policy. In addition, settling agents need to confirm insurance coverage with [the] insurer by email and share the status of loss of or damage to the cargo with surveyors.

“Consequently, it is a key objective to achieve the prompt insurance payment if claims settling agents can promptly and accurately collect and share all the trading documents and the latest insurance policy related to the claim with involved parties all over the world.”

The blockchain proof-of-concept was undertaken across eight countries and found that the ability to quickly share information reduced claims payment times from a month to less than a week.

Tokio Marine added, “We have confirmed the effectiveness of blockchain technology in marine cargo insurance claims’ procedures through this proof-of-concept. Tokio Marine & Nichido and NTT DATA will continue to work on the remaining objectives obtained from this proof-of-conceptand aim to achieve practical use in 2019.”