They are five of the biggest insurance companies in the world – yet despite being competitors they have found a reason to join forces.

Aegon, Zurich, Munich Re, Allianz and Swiss Re have formed a group attempting to put blockchain through its paces and to make an assessment on whether the technology can truly make the insurance industry more efficient.

According to a Financial Times report, the technology has been slow to take off in the insurance sector but smart contracts may be the answer as they put terms and conditions into code so they can be put into action automatically when specific trigger points are reached.

Speaking to the publication, Alessandro Sapdoni, who is part of the project for Zurich, noted that there are a number of potential uses for blockchain.

“The first is for reinsurance,” he said. “We’re looking at the use of smart contracts to streamline the selling of reinsurance and the processing of claims.

“We should be able to provide more efficient and streamlined services to our customers.”

The formation of the group comes on the back of a Capgemini report which outlined that financial services companies could potentially generate huge savings with blockchain – with the idea that insurers could potentially reduce operating and claims costs by as much as 13% with smart contracts.

However, it is likely that major insurers will take their time before implementing blockchain, making a full assessment of the benefits it can deliver first.

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