Allianz Tests Blockchain to Boost Catastrophe Bond Trades
Germany-based insurance giant Allianz has reported it has successfully used blockchain-based smart contracts to handle catastrophe swaps and bonds, adding that the technology could boost marketability of the financial instruments. "Cat swaps" and bonds are tradable instruments that allow insurers to guard against huge potential losses following a major catastrophe, and which are triggered under predefined parameters. However, the payments between insurers and investors can drag on for weeks or months after a disaster. Automating the process via smart contract technology, though,....
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Europe’s biggest insurer Allianz has stated it has successfully tested the use of smart contracts to improve natural disaster bond settlements. Allianz Cuts Cost with Smart Contracts. The news was announced following a partnership with Bermuda-based investment management firm Nephila Capital, which specializes in reinsurance risk and so-called....
Allianz, the German insurance major has implemented blockchain technology to cater to the CAT Bonds market. Adoption of Blockchain technology in the Insurance sector has grown beyond the United Kingdom. The decentralized ledger technology, which acts as the backbone of the Bitcoin network will soon be adopted by the German Insurance major, Allianz (ETR:ALV). Allianz, headquartered in Munich, Germany has announced the new development in its latest statement released to the press yesterday. The company will be initially implementing the blockchain technology for trades involving ‘CAT Bonds’....
Allianz Risk Transfer and Nephila Capital Ltd. have used blockchain smart contract technology to conduct a natural catastrophe swap in a pilot test, demonstrating that processing and settlement can be accelerated between insurers using blockchain-based smart contracts. The test indicates blockchain-based contracts can also be applied to other insurance and investment transactions. Cat Bonds And Swaps. Catastrophe (“cat”) bonds and swaps transfer a specific set of risks, including natural disaster risks like typhoons and hurricanes, from an insurer to other insurers or investors. In a cat....
The Danish Red Cross along with several humanitarian partners have collaborated to float a catastrophe bond to cover volcanic eruption disasters. Crypto and blockchain adoption for humanitarian causes is set for another expansion as the Danish Red Cross has sponsored a catastrophe bond aimed at providing relief in the aftermath of a volcanic eruption.According to CIR Magazine, the catastrophe bond — often shortened to cat bond — has the backing of private firms and other humanitarian establishments with investors like Solidum Partners and Plenum Investments associated with the....
Earlier this month, blockchain startup Everledger joined the latest class of a startup accelerator owned by insurance and financial services company Allianz France. Everledger, which uses a blockchain as a distributed registry for diamonds, is set to work with Allianz France, a subsidiary of Germany-based Allianz, to explore the technology even further. Sylvain Theveniaud, managing director for the Allianz accelerator, said in a recent interview that his company sees promise in the blockchain and will work with Everledger to develop proofs-of-concept as part of a research initiative. By....