The world’s first blockchain platform for marine insurance is now in use by Maersk, with over 1,000 commercial vessels across the shipping industry expected to utilize the tool in the next year.
The platform, known as Insurwave, was built by international accountancy firm EY and software security company Guardtime. It will support more than half a million automated ledger transactions and connect participants in a secure private network with an accurate, immutable audit trail.
Maersk contributed to Insurwave’s development as a pilot customer and it is being supported by insurance firms Willis Towers Watson, XL Catlin and MS Amlin.
“Operating around 350 owned container vessels across the world, marine insurance takes up considerable resources for us,” explains Lars Henneberg, A.P. Møller-Maersk’s head of risk and insurance.
“Moving it to this platform is helping us automate manual processes and alleviate a range of inefficiencies and frictional costs in the way we have used to trade marine insurance."
The first phase of Insurwave rollout is focused on marine insurance, though the platform’s creators plan to introduce it to other types of business insurance for the marine cargo, global logistics, aviation and energy sectors.
“Ultimately, through the use of IoT and smart contracts, policies will be updated automatically to reflect the risks covered; and this combination of technologies will help improve efficiency in claims assessment and payment,” predicts Martin Henley, chief information officer, XL Catlin.
“Those are tangible wins for our clients, no matter their industry.”