PwC has created a working blockchain prototype for the London Market’s Target Operating Model (TOM) Innovation Exchange, which demonstrates how the technology can support claims bordereau management processes, the company said.
Completed over a six-week period, PwC said, the proof of concept focuses on enhancing interactions among multiple different parties involved in a claims bordereau process (third-party administrators, claims approvers and brokers).
The automated process includes claim creation, supporting documents, invoice creation, and approval or rejection of invoices and demonstrates how blockchain can make interaction between multiple parties in the claims process more efficient, PwC explained.
As part of the trial, various parties were given different roles and permissions to view data, while smart contracts were used to automatically approve claims that met pre-agreed conditions, which resulted “in reduced administrative costs and burdens as well as faster claims approval and payment.”
The proof of concept was developed by PwC’s blockchain team in Belfast, which comprises 25 blockchain engineers who are seeking to exploit and commercialize blockchain.
“This proof of concept demonstrates the potential for efficiency and the elimination of error and duplicated information,” said Steve Webb, financial services blockchain leader at PwC.
“It shows how blockchain and smart contracts can reduce costs and speed up the claims bordereau process in the London Market, allowing experts to focus on more value-add complex matters,” he added.
Blockchain technology, which consists of “blocks” of data in a digital ledger, is highly resistant to malicious tampering, thus offering significant security advantages to governments, banks, insurers and the financial services sector, PwC affirmed.