It was always going to happen. As the blockchain sector evolves, more companies will start merging into it. And this week, that’s precisely what British insurer Legal & General did.
Here’s everything we know.
Legal & General and Amazon: A Blockchain Partnership
On June 11, Reuters said the multinational British insurer is now working with Amazon to create a blockchain system specifically for corporate pension deals. By using Amazon Web Services—this is the Seattle-area’s cloud computing arm—Legal & General will process bulk annuities.
Speaking on the news, Thomas Olunloyo, Chief Executive of the insurer, said blockchain technology suits “the long-term nature of annuities business.” This is because blockchain “allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years.”
While exciting news, it’s not overly surprising. After all, many have expected the insurance industry to begin working with blockchain technology as other areas of the corporate world have. And while not surprising news, there are important bits of information to mention.
The most important, however, is to note that Legal & General Reinsurance will not be releasing the blockchain platform within its focus market, Britain and the United States. For now—it might release it in these territories later—the platform will be accessed outside Britain and the US.
What to Expect
While important news for Legal & General, we still don’t know how its partnership with Amazon will turn out. Recently, when companies begin working with blockchain, the results are not what’s anticipated before making the move. To quote Reuters: “Few projects have been deployed at any scale so far, as questions remain over-regulation, reliability and cost.”
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