MALVERN, PA — The Institutes RiskStream Collaborative™, the risk management and insurance industry’s largest enterprise-level blockchain consortium, announced its collaboration with TrustLayer, Inc., the leading next-generation insurance verification platform, and several of its consortium members, including, Liberty Mutual Insurance and Nationwide Insurance, to create a proof of concept (POC) for the insurance industry’s first certificate of insurance verification solution.
The goal of the POC is for TrustLayer’s robotic process automation technology to blend with RiskStream’s Canopy distributed-ledger network in order to transform the current complicated and inefficient process to a fully integrated and streamlined process. This could allow insurers the means to securely share policy data as a single-source of truth among producers, policyholders, and certificate holders.
Currently, proving insurance coverage involves inefficient, manual processes and time-consuming back-and-forth communications. Often these largely paper-based workflows only provide a static view of insurance coverage of which has no way of accounting for policy cancellations, changes, and/or fraud. The certificate of insurance verification solution helps to mitigate some of the issues surrounding fraudulent certificates of insurance, provide real-time updates on policy changes and cancellations, and reduce manual, error-prone processes that negatively impact all stakeholders in the risk transfer chain.
“This proof of concept is an important step forward in revolutionizing insurance verification across all industries and coverage lines,” said Christopher McDaniel, President of RiskStream Collaborative. “RiskStream’s work with TrustLayer on a real-time certificate of insurance verification solution could fundamentally change the way businesses prove and validate insurance coverage.”
Liberty Mutual Product Manager for Global Innovation Brendan Smyth echoed the importance of the POC. “One of the main reasons we joined the consortium was to support its effort to solve key business challenges, including this one faced by all industries: quickly and accurately verifying insurance coverage. Resolving this long-standing issue would add tremendous value to insurance brokers, buyers, providers, lenders, vendors and a host of others.”
“I’m excited to work closely with The Institutes RiskStream Collaborative and several of its consortium members to build the industry’s first DLT standard to securely share policy data,” said John Fohr, CEO of TrustLayer. RiskStream has done an excellent job at leading this initiative to get key stakeholders around the same table. The result of our combined efforts will be a truly next generation insurance verification platform that will benefit all stakeholders.”
The RiskStream Collaborative operates in property & casualty, reinsurance and life & annuities. Most of RiskStream’s early efforts in property & casualty focused on personal lines. With the recent Certificates of Insurance work, as well as efforts in workers compensation and surety bonds, RiskStream is diversifying its portfolio of offers to membership. RiskStream aims to expand its network of members and connect insurance-oriented organizations to create greater efficiencies and achieve growth opportunities through blockchain innovations. This has led to the formation of RiskStream Labs, a framework established by the RiskStream Collaborative that is focused on accelerating completion of blockchain-centered innovations through participation from both member and nonmember organizations. A large group of organizations were involved in Phase 1 RiskStream Labs sessions for Certificates of Insurance over the summer, including firms from other industries. The goal was to narrow down the concept, so a smaller group could move forward with proof of concept build in the fall.
“We are excited about the work we’re doing with the digital COI proof of concept as it solves a longstanding problem spanning many industries in which our customers operate,” said Patrick Schmid, Vice President of RiskStream Collaborative. “Allowing our carrier members to prove insurance in real time will enable them to accelerate their business transactions while decreasing our loss ratios due to fraud and manual errors. Brokers and carriers that wish to gain access to the Certificates of Insurance POC, expand their technical knowledge, and collaborate with leading carriers can still join the COI Working Group in RiskStream Labs into early 2021.”
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