Cognizant to Use Blockchain for Insurance
Cognizant, the American multinational company, is planning to build a platform to allow firms to share data with lower risk of fraud and data breaches. The company has reportedly joined hands with 14 Indian insurance firms to develop a blockchain solution which would aid and secure cross-company data sharing.
In their official statement on Monday, the MNC said that the platform would offer greater efficiency, faster turnaround, and better record-keeping than the traditional methods existing in the market.
The project is a collaborative effort between Cognizant and a number of insurers such as SBI Life, Max Life Insurance, Kotak Life, ICICI Prudential Life, and HDFC Life. It is hosted on Microsoft Azure and is built on R3’s Corda distributed ledger platform.
SBI Life’s president of operations, Anand Pejawar, said that the immutable and decentralized nature of blockchain can provide the ability to provide security against false billing and document tampering. According to him, it can open up new models for the insurers which can prove to be a lot more secure than the options available currently. Pejawar further explained his point by saying:
“Blockchain has the potential to catalyze a significant shift in the insurance industry’s underlying technology and business models.”
Storing data on the blockchain would make insurers see multiple benefits including reduced duplication of processes and operating costs.
Cognizant’s global delivery head for insurance, Arun Baid, said:
“As a shared source of truth, blockchain opens numerous possibilities for insurers to collaborate more effectively and transparently, make better informed decisions, and create greater trust and accountability, while disintermediating data aggregators.”
With more such companies taking a keen interest in the technology, blockchain would see a brighter future in India.
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