EY, Microsoft and Expedition Giant Maersk are developing a blockchain-based marine insurance
Accounting giant EY said Wednesday that plans to launch the first block chain platform for maritime insurance, alongside Microsoft, A. P Moller-Maersk and others.
The distributed ledger will be used to collect information on shipments, risks and liability and to help companies comply with insurance regulations.
According to the world insurance leader Shaun Crawford of EY, the marine insurance industry 400 years ago is one of the most inefficient areas in the global insurance industry. Shipping companies pay around $30 billion in premiums each year, according to Reuters.
Distributed logs are data clusters shared across multiple sites without the need for central administrators and other intermediate staff.
The original blockchain was built to serve as the distributed master book for bitcoin transactions. But various chain-blocking experts believe that technology can provide transparency to a multitude of different industries, not just financial services.
Maaersk has been particularly engaged in a block chain with IBM to create a supply chain that includes freight forwarders, ocean carriers and ports on a register. The aim of the project is to put 10 million Maersk containers on a block chain by the end of this year.
The platform is built on Microsoft’s Azure cloud-based technology.
In March, a concept test for the EY digital ledger was completed.