AIG, in collaboration with IBM and Standard Chartered bank in June, executed the first, multinational “smart contract” insurance policy using blockchain, a technology that provides a secure ledger of transactions online, available only to those who are given access. Blockchain creates a verifiable, permanent record that changes in real time as the contract is altered or transactions affiliated with it are conducted. One valued participant that was missing: an agent. The entire process was run directly between insurer, tech provider and client, though AIG said it is not planning on cutting agents out of its sales processes—even when using blockchain. The question is, what agents will have the requisite knowledge to collaborate in these smart contracts? Business Wire shares more about the placement of this policy.
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