An insurer and reinsurer recently tested whether a blockchain technology-based system could help with a simulated reinsurance administration job.
RGAX, a subsidiary of Reinsurance Group of America Inc., worked with Mutual of Omaha to have a distributed ledger system process the flow of monthly premium payments associated with a reinsurance treaty.
The distribution of the payments depended on the policy effective date.
Lines of software code inside the distributed ledger system were supposed to automatically make sure that RGA and Mutual of Omaha each received the right percentage of each premium payment.
The system seemed to work, RGAX says.
RGAX says it’s hoping it can eventually use distributed ledger systems to help with reinsurance treaty administration out in the real world.
— Read P&C Blockchain Consortium Evolves, Adds Life and Annuity Carriers, on ThinkAdvisor.