Legal & General launches blockchain reinsurance
Written by Peter Walker
Legal & General has launched ‘estua-re’, the first pension risk transfer execution platform driven by blockchain technology.
Part of the insurance and investment group’s global Pension Risk Transfer (PRT) strategy, it is a single ecosystem capable of driving every stage of the reinsurance value chain, including pricing, claims handling, financial reporting and collateral; utilising data dynamically stored on the blockchain.
It will replace multiple processes and systems traditionally used to support each function, with the added security of the blockchain.
Legal & General Reinsurance clients will be gradually moved to support provided on this platform, which has been developed using Amazon Web Services (AWS).
Amazon Managed Blockchain allowed Legal & General to quickly set up and manage its new blockchain network, with multiple parties now able to transact with each other without needing an intermediary. All members maintain a copy of the ledger database, providing greater transparency, while manual reconciliation can be replaced with smart contracts.
Thomas Olunloyo, chief executive of Legal & General Reinsurance, said: “estua-re is the result of market leading innovation led by the L&G Re team and an exciting milestone in the deployment of blockchain in the long term reinsurance space.
“We believe that blockchain is uniquely suited to the long term nature of annuities business, as it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years”