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Ep. 104 – AAIS’ OpenIDL update and developing a network data strategy
Joan Zerkovich, Senior Vice President, Operations at American Association of Insurance Services (AAIS) walks us through how AAIS have expanded their OpenIDL blockchain application beyond streamlining regulatory reporting for carriers. In this episode she explains to us how OpenIDL helps insurers develop a network data strategy that provides data standards and a secure, scalable and cost-effective platform for carriers.
What is blockchain?
Blockchain is a distributed ledger of which a copy of the ledger is available to all the participants of the network. Blockchain solves a key problem that other data technologies didn’t provide which was an immutable record. It provides a secure way to store data, transparency in how the data is being used and an immutable record that is so critical to trusting any activity that happens on the network.
It enables to create systems networks for a wide variety of solutions such as transactional networks or in the case of OpenIDL as an analytics platform.
What is the American Association of Insurance Services (AAIS)
In the United States, the insurance industry is regulated at the state level. A National Advisory organisation exists to provide consistency between all the state regulations. AAIS is formed by regulation and is licensed in all 50 states to do the following:
* Serve as a bridge between the carriers and the regulators in the way they exchange and share data
* Through that exchange the AAIS uses some of that data to create products such as a homeowner’s policy with a rating plan or an auto plan. AAIS brings consistency across all the states in the way those products are delivered to the market. Carriers pick up the AAIS products to add value on top of them.
AAIS has been doing this for over 80 years. They realise it isn’t as efficient as it should be and that it needed to be modernised due to the different data needs in the industry today.
The Open Insurance Data Link (OpenIDL)
https://youtu.be/4Z6SDGtKgtE
In September 2018 we featured Joan Zerkovich on Insureblocks to tell us about the Insurance Regulatory Reporting using Blockchain – AAIS introduce openIDL.
Joan reminds us that her team didn’t know they were going to create OpenIDL when they started off on that journey. They knew that they had a problem in the way they were collecting data and sending reports over to the regulators. There were a lot of pain points in the participants in that process. The old-style statistical data plans that had been used for the last decades didn’t contain enough information the AAIS as an advisory organisation needed. The regulators also found that the stat plans didn’t have the necessary data for them to answer the questions they were getting from their legislators.
Consequently, the regulators would go around the advisory organisations by making data calls directly to the carriers to get the data they need. This caused a lot of pain points with the carriers who saw an increasing volume of data leaving the security of their data centres beings transferred to third parties without any oversight in how the data was being used.
Through a number of design thinking sessions AAIS was able to identify those pain points and look into possible solutions. The available data technology platforms had a number of problems in terms of data security, transparency of how the data was being used and of course as a regulated industry the need for an auditable and immutable record was r...
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By Walid Al Saqqaf - Blockchain insuranceJoan Zerkovich, Senior Vice President, Operations at American Association of Insurance Services (AAIS) walks us through how AAIS have expanded their OpenIDL blockchain application beyond streamlining regulatory reporting for carriers. In this episode she explains to us how OpenIDL helps insurers develop a network data strategy that provides data standards and a secure, scalable and cost-effective platform for carriers.
What is blockchain?
Blockchain is a distributed ledger of which a copy of the ledger is available to all the participants of the network. Blockchain solves a key problem that other data technologies didn’t provide which was an immutable record. It provides a secure way to store data, transparency in how the data is being used and an immutable record that is so critical to trusting any activity that happens on the network.
It enables to create systems networks for a wide variety of solutions such as transactional networks or in the case of OpenIDL as an analytics platform.
What is the American Association of Insurance Services (AAIS)
In the United States, the insurance industry is regulated at the state level. A National Advisory organisation exists to provide consistency between all the state regulations. AAIS is formed by regulation and is licensed in all 50 states to do the following:
* Serve as a bridge between the carriers and the regulators in the way they exchange and share data
* Through that exchange the AAIS uses some of that data to create products such as a homeowner’s policy with a rating plan or an auto plan. AAIS brings consistency across all the states in the way those products are delivered to the market. Carriers pick up the AAIS products to add value on top of them.
AAIS has been doing this for over 80 years. They realise it isn’t as efficient as it should be and that it needed to be modernised due to the different data needs in the industry today.
The Open Insurance Data Link (OpenIDL)
https://youtu.be/4Z6SDGtKgtE
In September 2018 we featured Joan Zerkovich on Insureblocks to tell us about the Insurance Regulatory Reporting using Blockchain – AAIS introduce openIDL.
Joan reminds us that her team didn’t know they were going to create OpenIDL when they started off on that journey. They knew that they had a problem in the way they were collecting data and sending reports over to the regulators. There were a lot of pain points in the participants in that process. The old-style statistical data plans that had been used for the last decades didn’t contain enough information the AAIS as an advisory organisation needed. The regulators also found that the stat plans didn’t have the necessary data for them to answer the questions they were getting from their legislators.
Consequently, the regulators would go around the advisory organisations by making data calls directly to the carriers to get the data they need. This caused a lot of pain points with the carriers who saw an increasing volume of data leaving the security of their data centres beings transferred to third parties without any oversight in how the data was being used.
Through a number of design thinking sessions AAIS was able to identify those pain points and look into possible solutions. The available data technology platforms had a number of problems in terms of data security, transparency of how the data was being used and of course as a regulated industry the need for an auditable and immutable record was r...