Blockchain continues its advance as a RegTech tool of choice as the American Association of Insurance Services (AAIS) announced it is using distributed ledger technology from IBM to automate its new regulatory reporting platform.

The AAIS, a not-for-profit advisory organisation for the US property and casualty insurance industry, has launched a platform called openIDL (open Insurance Data Link) to improve regulatory and compliance processes and increase accuracy.

Using the secure access and immutable recording enabled by the blockchain ledger, OpenIDL enables insurers to contribute historical and current data directly to satisfy state regulatory and compliance requirements.

The technology, based on IBM’s Blockchain Platform and open source Hyperledger Fabric, is currently in a pilot phase.

Ed Kelly, chief executive of the AAIS, commented: "We recognized the potential for blockchain to streamline the regulatory reporting process for our member carriers, as well as the opportunity to improve security, accessibility and accuracy of data for regulators."

Sandip Patel, from IBM global insurance industry, said: "While the initial phase of the openIDL focuses on data sharing and regulatory reporting, the open platform provides a foundation for even broader innovation and new applications in the future, while providing full privacy and confidentiality protection among parties."

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