The Institutes RiskBlock Alliance, which is powered by blockchain technology, declared that it would align with Ernst & Young in respect of risk management guidance and cybersecurity solutions. The consortium firm is focusing on the insurance industry currently. The company believes that the two services are key factor and forms part of its objective to try and execute the technology for various use cases. The company hopes to achieve this before the current year ends.
Critical To Success
The Institutes RiskBlock Alliance president, Christopher McDaniel, indicated that the company is attaching much importance to cybersecurity testing services, risk, and controls guidance. These are the services that Ernst & Young is developing, and they are critical to the success of the firm. Similarly, the consortium group is also keen to establish the standard for practices to be adopted by industry on blockchain enterprise, cryptovest.com reported. The top four auditing firm will work with the firm to assess the risks associated with the blockchain solution.
Ernst & Young will also find out the key practice controls apart from providing the distributed ledger technology-powered cyber security assessment and testing. David Hollander, head of global insurance for E&Y, commented, “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.”
The Institutes RiskBlock is keen to power its DLT applications, as well as, tools to service its policyholders. Aside from that, its app would cut down costs and enhance the transparency level apart from providing accurate client data and reducing fraud. Interestingly, the company has been able to characterize more than 40 use cases with its apps and tools. The consortium is showing enough interest to execute different apps also.
In effect, this could be categorized into four. The first is a proof-of-insurance app. This enables both car drivers and enforcement authorities to examine and confirm in real time the insurance coverage digitally. The second is a parametric insurance app. This could allow automation of the claim procedures through smart contracts, as well as, a weather oracle. A third app is a subrogation tool. This is applicable for smart contracts to extend its support to the payments among consortium members and reduce streamlining and manual documentation processes.
Data Sharing Process
The fourth app notices loss of data sharing process. The consortium firm hopes that this would provide a better experience for clients and companies. Launched in July 2017, RiskBlock Alliance has roped in approximately 30 firms from brokers, insurers, and reinsurers. Accenture has also joined last month to create a solution to be used in the insurance sector.
It is a well-known fact that all the big four accounting firms are showing enough interest in the blockchain technology either directly or indirectly. KPMG, Deloitte, and PricewaterCoopers are the other three accounting firms. There is no doubt that the development is a significant one for the sector.