CASE STUDY
L
egal & General, one of the UK’s
leading financial services groups and a
major global investor, has announced
the launch of ‘estua-re’, the first pension
risk transfer execution platform driven by
Blockchain technology.
‘estua-re’ is a transformative pillar of Legal &
General’s global Pension Risk Transfer (PRT)
reinsurance strategy as the group aims to
achieve its strategy of global leadership in
annuities. It is a single ecosystem capable of
driving every stage of the PRT reinsurance
value chain including pricing, claims
handling, financial reporting and collateral,
utilising data dynamically stored on the
Blockchain. It will replace multiple processes
and systems traditionally used to support
each function, with the added security of
Blockchain technology.
‘estua-re’ enables the group to provide
excellent service to customers in multiple
markets, efficiently and at lower long-term
costs, redefining the way long-term life
reinsurance business is sold and managed,
with these benefits flowing to the individual
pensioners whose long term financial
security Legal & General guarantees via
reinsurance. Legal & General Reinsurance
(Legal & General Re) clients will be gradually
moved to support provided on this platform.
The Legal & General Reinsurance team
developed ‘estua-re’ using Amazon Web
Services (AWS), chosen because of the tech
giant’s innovative products and services for
Blockchain technology.
Amazon Web Services provides Amazon
Managed Blockchain, which allowed Legal &
General to quickly set up and easily manage
its Hyperledger Fabric Blockchain network.
With Amazon Managed Blockchain,
multiple parties can transact with each
other without needing an intermediary. All
members maintain a copy of the ledger
database, providing greater transparency.
Also, manual reconciliation can be replaced
with smart contracts, making the process
much more efficient.
Thomas Olunloyo, CEO of Legal & General
Reinsurance, said: “‘estua-re’ is the result of
market-leading innovation led by the L&G
Re team and an exciting milestone in the
deployment of Blockchain in the long-term
reinsurance space.
“Using AWS, we have been able to create a
solution that addresses not only the greater
speeds at which risks are transacted but
also drives transparency and security in an
increasingly interconnected market. We
believe that Blockchain is uniquely suited to
the long-term nature of annuities business as
it allows data and transactions to be signed,
WITH AMAZON
MANAGED
BLOCKCHAIN,
LEGAL &
GENERAL
REINSURANCE
CAN FOCUS
ON BUILDING
NEW BUSINESS
APPLICATIONS
THAT ENRICH THE
EXPERIENCE FOR
ITS CUSTOMERS
AND TRANSFORM
ITS BUSINESS.
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