The stock of Cognizant Technology Solutions Corp (NASDAQ:CTSH) closed at $82.19 gaining 0.51% in yesterday’s trading session. The company has gone ahead to partner with 14 insurance firms from India towards the development of a blockchain solution geared towards the cross-company data sharing.
In a statement, the IT multinational outlined that the platform was made in such a way that it will be allowing the various firms to share data in a secure way and also at a much lower risk of fraud and data breaches. In the same vein, it will be looking forward to delivering more efficiency, faster turnarounds as well as better record-keeping which will do much better than the traditional methods.
The solution is built on R3’s Corda distributed ledger platform not forgetting the fact that it is hosted on Microsoft Azure. That was fundamentally a solution that was developed the previous year and was basically a result of the collaborative effort between a consortium of insurers and Cognizant. Under the consortium of insurers are the Kotak Life, HDFC Life, Max Life Insurance, ICICI Prudential Life and SBI Life.
President of operations at SBI Life Anand Pejawar while moving out of a business conference that was held recently outlined that immutable and decentralized nature of blockchains were the aspects that would bring about the ability to deal with false billing and document tampering. It is worth noting that there are new models for insurers being opened up at the moment.
Blockchain has what it takes to catalyze a major shift in the underline technology as well as in the business models associated with the insurance industry. It is through the storage of data in blockchain that the various insurers will be in a position to reap from the wide array of benefits that pull along in the longrun. Those include the duplication of processes as well as the cutting down of the operating costs.
The global delivery head for insurance at Cognizant Arun Baid outlined that the blockchain was opening up several possibilities for insurers to move ahead and partner in a more transparent and effective manner. It will be about making more informed decisions.