The Linux Foundation, a nonprofit technology consortium that powers the Linux operating system, is reportedly supporting a new blockchain-based project for the insurance sector. On April 12, the Linux Foundation announced the launch of the Open Insurance Data Link (OpenIDL) platform. This platform is a project that is designed to minimize insurance reporting costs and develop a standardized insurance data repository using distributed ledger technology (DLT).
OpenIDL is a joint venture of the Linux Foundation together with the American Association of Insurance Services (AAIS). AAIS is a national insurance advisory organization in the US.
The open-source project brings together major global insurance firms like The Hanover and Selective Insurance Group and the tech and service providers like Chainyard, MOBI, and KatRisk. All of these firms and institutions will participate in a common DLT platform to share data and business processes in the insurance sector.
Regulatory reporting in the property and casualty insurance sector is one of the primary use cases for the OpenIDL network. Taking advantage of the blockchain’s basic features like transparency and immutability, the platform strives to enhance trust, or guarantee to the regulators and other insurance sector participants that reporting data is complete and accurate.
OpenIDL is operating as a part of the Linux Foundation’s open governance network model, meaning that its network is built on nodes. These nodes are run by many organizations connected by a shared distributed ledger. The common ledger offers a sector utility platform for recording transactions and automating business processes. Chainyard senior vice president of consulting services Isaac Kunkel said:
“Blockchain is a team sport, and with the OpenIDL platform, companies, regulators, and vendors are forming an ecosystem to collaborate on common issues for the betterment of the insurance industry. The entire industry will benefit through more accurate data and better decision making.”