We don’t want to say we told you so, but we told you so. Yesterday’s news held reports that shipping giant Maersk has begun a 20 week Blockchain proof of concept trial to dramatically improve the efficiency of their shipping insurance processes. Earlier this year the company suffered major losses due to a cyber attack which shut down all of the applications and data affecting their major terminals. To read more on the incident and cyber security in the shipping industry, click here.
Blockchain for efficiency and transparency
Maersk is apparently seeking to start sharing shipping data between clients, brokers, and insurers through a decentralised database made possible by Blockchain. Until now, they have continually struggled with a complicated shipping insurance process requiring contracts to be signed at every port a shipment would visit. When this process happens through a Blockchain, transparency will be achieved for all parties involved, improving auditing and allowing parties to share data in real time.
Maersk’s exploration of Blockchain represents a big step for the shipping and insurance industries in general, and is a warning that disruption for the better is on the way. The techniques they are testing could well be applied to insurance in the auto industry, or by further companies in shipping for the same purposes.