By American retail giant Amazon has joined forces with UK-based insurance agency Legal & General to develop a blockchain platform for the management of corporate pension deals as per a report released by Reuters on June 11.
According to the Reuters report, Legal & General will utilise the Amazon Managed Blockchain for its bulk annuity transactions. This occurs when businesses transfer their pension schemes to Legal & General for insurance.
As per an article by the Financial Times, businesses conduct bulk annuity transactions to insurers in this fashion so that they are not held responsible for making payments for employee pensions.
Thomas Olunloyo, CEO of Legal & General Reinsurance commented on how blockchain solutions are fitting in terms of the longevity of annuities:
“… 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.”
Furthermore, Amazon rolled out its managed blockchain service back in April via its subsidiary Amazon Web Services. Known as a blockchain-as-a-service or BaaS, the service allows customers to easily create and manage blockchain systems upon the Ethereum and Hyperledger networks through the automation of key aspects of blockchain management.
As per a statement from the general manager of Amazon Managed Blockchain, Rahul Pathak, the service “… takes care of provisioning nodes, setting up the network, managing certificates and security, and scaling the network.”
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