Blockchain-Oriented Insurance Consortium Chooses EY as Cybersecurity and Risk Management Provider

Published on 22 August 2018 by Cryptovest Staff

Blockchain-oriented consortium RiskBlock Alliance, which focuses on the insurance industry, announced that it would collaborate with EY on cybersecurity solutions and risk management guidance.

The Institutes RiskBlock™ Alliance, a blockchain group focused on risk management and the insurance market, said on Monday that it was appointing professional services firm Ernst & Young (EY) to be the leading service provider for blockchain-related cybersecurity and risk management guidance. The two services are part of the consortium’s endeavor to trial and implement the technology for different use cases by the end of this year.

Comments from the Consortium

Christopher G. McDaniel, president of The Institutes RiskBlock Alliance, commented on the deal:

“We expect that the risk and controls guidance and cybersecurity testing services EY is developing will not just be critical to the success of the RiskBlock Alliance, but likely will help set the standard for industry-leading practices for blockchain enterprise.”

EY will work with the 30-member group to determine risks attributable to its blockchain solution, find key practice controls, and offer blockchain-oriented cybersecurity evaluations and testing.

EY’s head of Global Insurance, David Hollander, said:

“The Institutes have been a long-term knowledge leader and non-profit partner to the insurance and risk management industry. It makes sense that they are leveraging that strength of reputation and stability to help steer the industry into a new, uncertain and yet exciting future as an industry.”

Blockchain Use Cases in Insurance

RiskBlock wants to leverage its blockchain apps and tools to serve policyholders, cut costs, reduce fraud, and improve the transparency and accuracy of client data. The consortium has already defined over 40 use cases and is keen to implement applications like:

  • A proof-of-insurance app: Permits car drivers and law enforcement agencies to monitor and confirm insurance coverage digitally in real time.
  • A parametric insurance app: Can automate the claim procedures by using smart contracts and a weather oracle.
  • A subrogation tool: Applies smart contracts to support the payments between consortium’s members, reducing manual documentation and streamlining processes.
  • A first notices of loss data sharing process: Will enable a better experience for companies and clients.

RiskBlock Alliance was launched in July 2017 and currently includes about 30 insurers, reinsurers, and brokers.

EY is one of the Big Four accounting firms, along with Deloitte, PwC, and KMPG, all of which have demonstrated at least some interest in blockchain.

Last month, Accenture, another professional services firm, joined RiskBlock Alliance to develop a blockchain solution to be used within the insurance industry.