16th June 2019
Legal & General Group 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 we guarantee via 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 due to their 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 their 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 Re comments “‘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, recorded and maintained in a permanent and secure nature over the lifetime of
these contracts, which can span over 50 years”
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