No More Paper Insurance Cards? The Institutes RiskStream CollaborativeTM Launches Blockchain-Backed Proof of Insurance Tool; Nationwide First to Bring to Production
MALVERN, Pa. — Dec. 20, 2017 — Insureds, insurers, and law enforcement are all one step closer to accessing a more streamlined and secure proof of auto insurance with the release of a blockchain-backed app built by the RiskStream Collaborative, an insurance-focused, industry-led consortium.
The RiskStream Collaborative has created the first blockchain framework designed specifically for the risk management and insurance industry, and Nationwide will be the first to use the platform to simplify real-time insurance coverage verification. This cross-sectored and enterprise-focused platform provides multiple insurance solutions on a common framework. RiskStream was developed by The Institutes RiskStream Collaborative, an insurance-focused, industry-led consortium.
“The current way that drivers provide proof of insurance is cumbersome and uncertain,” said Christopher G. McDaniel, executive director of The Institutes RiskStream Collaborative. “Sharing proof of insurance through blockchain is key to streamlining the process of providing proof and marks the start of our efforts to revolutionize many other aspects of the insurance industry. Our collaboration with Nationwide is the first step toward a better overall system.”
Blockchain is a growing technology that has the power to simplify and secure the way transactions are processed. The RiskStream framework uses blockchain to provide insureds with real-time verification that insurance coverage is accurate and allows law enforcement officers to verify proof of insurance confidently and efficiently, without relying on paper forms. Similarly, it provides insurers with a more efficient, cost-effective way to offer proof of insurance. Soon, insureds will be able to share trusted, third-party verified proof of insurance with a click of their phones.
“Blockchain is a fundamental technology projected to revolutionize the financial services and insurance industries,” said Seth Flory, vice president of IT strategy and technology innovation at Nationwide. “Nationwide is excited to be working with the RiskStream Collaborative to reimagine coverage-verification processes that have been the same for decades. This verification product should enable us to create a win-win-win for policyholders, law enforcement and the insurance industry.”
The coverage-verification initial use case is the foundation and starting point for all that The Institutes RiskStream Collaborative will do to support the industry. The consortium and its members anticipate serving policyholders and reducing costs by:
- Streamlining claim payments and premiums
- Reducing fraud through a centralized recording of claims
- Improving acquisition of new policyholders by validating accuracy of customer data