The insurer said it would use a managed blockchain system launched by Amazon Web Services (AWS) to handle bulk annuities, which involve Legal & General taking over companies’ defined benefit or final salary pension schemes, according to Reuters.
The emerging tech is viewed as a shared database that can securely process and settle transactions without the need for third-party checks. So far, banks and other financial companies have invested millions of dollars in blockchain systems to cut costs and complexity of unwieldy back- and mid-office processes.
L&G is only launching the blockchain platform for bulk annuity business outside its core markets of Britain and the US, although an L&G spokesman said the platform could be extended to those two markets in future.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now