Leading Indian Life Insurers Partner with Cognizant to Develop Industry-wide Blockchain
MUMBAI, India, April 17, 2018 - Cognizant (Nasdaq: CTSH) and a consortium of leading Indian life insurers — comprising SBI Life Insurance, Max Life Insurance, Canara HSBC OBC Life Insurance, Edelweiss Tokio Life, IDBI Federal Life Insurance, Birla Sun Life Insurance, HDFC Life, Kotak Life, Tata AIA Life, PNB MetLife, IndiaFirst Life Insurance, ICICI Prudential Life Insurance, Bharti AXA, Aegon Life, and SUD (Star Union Dai-ichi) Life Insurance — today announced that they have developed a blockchain solution to facilitate cross-company data-sharing. This will enable the insurers to reduce the risk of data breaches, fraud and money-laundering, while delivering superior experience to customers through improved process efficiency, better record-keeping, and accelerated turnaround time.
The solution, developed late last year as partof a collaborative blockchain program undertaken by the consortium, is among the consortium’s first distributedledger initiatives.Built on Corda, a distributed ledger platform developed by R3 and hosted onMicrosoft’s Azure infrastructure, the solution will help theseinsurers reducetheir reliance on data intermediaries and aggregators in obtaining customer andpolicy details for a wide range of critical purposes, such as know-your-customerdue diligence, financialand medical underwriting, risk assessment, fraud detection, and regulatorycompliance.
In additionto ensuring real-time availability, transparency and consistency of recordsthat can be audited at any time with easy traceability, storingdata on block chain will enable participating insurers to reduce operatingcosts, avoid duplication of procedures, and streamline approvals.
“Blockchainhas the potential to catalyze a significant shift in the insurance industry’sunderlying technology and business models,” said Anand Pejawar, President —Operations, IT & International Business, SBI Life. “With its model ofimmutable and decentralized data, and its ability to prevent tampered documentsand false billings from falling through the cracks, blockchain can enableinsurance providers to introduce new models, reinvent processes, and increasecapacity. We are pleased to be a part of this path-breaking consortium ofIndian life insurers and collaborate with Cognizant on driving distributedledger innovations of tomorrow.”
“Bytransforming how insurance companies operate and interact with stakeholdersacross the value chain, blockchain can rewrite the rules of competition in theinsurance industry,” said V. Viswanand, Chief Operating Officer, Max LifeInsurance. “The shared infrastructure provided by the distributed ledger, smartcontracts and non-repudiation capabilities of blockchain can dramaticallyenhance the insurance value chain, and pave the way to greater automation inrequesting, exchanging and entering data. The partnership between ourconsortium and Cognizant is a significant step forward in leveraging thelong-term strategic benefits of the technology and turning better customerexperience into a competitive advantage.”
“As ashared source of truth,blockchain opens numerous possibilities for insurers to collaborate moreeffectively and transparently, make better informed decisions, and creategreater trust and accountability, while disintermediating data aggregators,”said Arun Baid, Global Delivery Head for Insurance, Cognizant. “Ourcomprehensive blockchain and domain capabilities built over the years have madeus a trusted advisor for insurance companies to realize distributed ledger’sfull potential. We are proud to be a part of the consortium’s vision to createa more secure, streamlined ecosystem that can accommodate disruptive businessmodels of tomorrow.”