Tokio Marine & Nichido Fire Insurance, a Japanese insurance company, and system integration company NTT Data Corporation announced that they are testing blockchain-powered ‘data insurance policy’ for the shipping trade industry, IBTimes reported.
The trade finance is largely paper-based, cumbersome and engages various trusted parties. In the proof-of-concept by Tokio Marine, marine cargo insurance certificates that are blockchain-based is forwarded to those parties who are concerned with the trade, along with other key shipping documents including bill of lading and commercial invoice.
Both the parties are trailing the applications of blockchain for insurance certificates and policies. According to Tokio Marine, the particular PoC targets the insurance component of the international trade, while its partner, NTT Data, is working with at the big picture to change the whole international trading system with blockchain technology.
“The mainstream of shipping documents used in global trading are still based on paper, due to the fact that some of them are negotiable, which leads to the requirement of those documents being genuine, free from electronic disruption or cyber threats,” the Tokio Marine & Nichido Fire Insurance statement read, as reported by IBTimes.. “A major advantage of using blockchain technology is security. It is considered impossible to rewrite or alter the data contained within the blockchain which turns out to be a highly reliable technology for important documents. Needless to say, another advantage is the reduction in time for sending and receiving paper documents, as well as a reduction in costs."
The shipping industry has been recently embracing the blockchain technology for its various operations. Last September, Blockfreight, a new end-to-end blockchain solution for the global cargo shipping industry, announced that it is bringing blockchain to the global shipping industry and has begun its initial token offering (ITO). Also, Marine Transport International revealed the deployment of world’s first public blockchain solution in the global shipping industry. Meanwhile, largest container shipping company Maersk Group announced that it is exploring blockchain to improve operations involved in the paper-based bills of lading.
