Audit firm PricewaterhouseCoopers has published a report on its pilot project – the blockchain technology implementation to provide a real-time audit process for wholesale insurance companies.

Pricewaterhouse Coopers launched the project earlier this summer together with fintech company Long Finance and Z/Yen think tank. The Multichain platform is provided by Coin Science, the node participants are insurance companies, brokers and regulators. 

“An insurer can view policies on the blockchain, and make offers to back risk on a particular policy, with the broker having the ability and control to accept or decline these offers. This communication and negotiation between parties takes place all within the blockchain. When a policy is fully backed, a formalized insurance contract is created and again shared on the blockchain.”

PwC remarks that the network test allowed to better see how the blockchain can help to reduce paperwork, boost regulatory reporting and create a real-time audit history.  According to the report, document registration and exchange in blockchain will back operation legality and lower reputation risks caused by errors in the document flow.  

“Above all, blockchain technologies can help the wholesale insurance sector fulfil its role in underpinning the global economy more effectively. Just as blockchain is being pursued as a force for positive change in other areas of society – from identification for refugees to better public service delivery – it can also help wholesale insurance to discharge its responsibilities for the common good,” states Jonathan Howe, PwC UK Insurance Leader.

Lyudmila Brus