Vermont: Initiate Blockchain Technology in Insurance

Vermont, the state of U.S., is starting a blockchain project for the insurance sector.

The state government of Vermont announced last week a statement that the Vermont secretary and Commissioner of Vermont Department of Financial Regulation have signed a memorandum of understanding (MOU) to implement blockchain technology as a pilot project in the insurance industry.   This pilot project is to outline the results of blockchain in recordkeeping, implementation and registration procedures’.

The state office and Regulation Department both have released a Request for Information (RFI) to the insurers to work them for filing and registration in the pilot blockchain project. At present, the state has to maintain hard copies and digital documents.  This blockchain pilot project will test captive insurance processes such as registration, regulations, and implementation.  So blockchain pilot project will keep ease in recordkeeping, and processes.

The upcoming new technology will help the Vermont government and can develop efficiency and transparency governance for Vermonters.

The distributed ledger or blockchain technology will give a transparent and a clean record in the transactions, which leads to increase efficiency, transparency, accuracy, and protection for users.  But, in the traditional way record-keeping methods it is very costly.

Jim Condos, the secretary of Vermont State, said as:

“Developments in technology provide opportunities for government to improve efficiency and transparency, cut red tape, and improves services for Vermonters. This pilot will allow us to examine whether or not the application of blockchain technology for digital recordkeeping can improve aspects of the state regulatory process.”

In the United States Vermont is the leading state in the insurance field, approximately thirty new companies are registering in this area per year. The Vermont government has already initiated the procedure of identifying marketers with good technical expertise to implement this pilot project with the help of a Request for Information (RFI) method.

Those who are doing business and living in Vermont, this blockchain pilot project will cut their costs and also help the Vermont State government will increase data security, efficiency, and transparency. This pilot project may give good governance and maximize taxes to the State.