The trial, built by IBM using the open-source Hyperledger Fabric protocol, tested a commercial insurance master policy written out in London and applied to local policies in the US, Kenya and Singapore. By moving the policy from the traditional system where each counterparty would hold its own records to a self-executing smart contract written on the Fabric blockchain, the pilot reportedly showed how real-time visibility into the insurance coverage could allow recipients to be automatically notified following an insurable event.
The pilot recorded and tracked events that could trigger the payment of a policy, while ensuring that no single party was able to change the terms of coverage without the consensus from others on the network. Its jurisdictions were selected because they each represented different traits of a potential market. Specifically, the US market was selected for its size and complexity; Singapore was identified as a possible growth market for Standard Chartered; and Kenya was chosen for its unusual regulatory requirements around dispersals.
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