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Legal & General To Use Amazon's Blockchain Service For Pension Deals

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UK insurer Legal & General partnered with e-Commerce giant Amazon to use a blockchain-based system to handle corporate pension deals.

The retail life insurer announced that the blockchain solution will be used for pension risk transfer or PRT through Legal and General Reinsurance, a specialist reinsurer of PRT business. Legal and General Re provides insurance to direct insurers, who in turn provide insurance to pension schemes.

The blockchain system is based on Amazon Managed Blockchain, which was launched by Amazon Web Services or AWS. The blockchain currently supports Hyperledger Fabric.

Legal & General said Blockchain is an ideal technology for PRT business. Managed blockchain system would help handle bulk annuity transactions from insurers, and allows exchange of data between various counterparties.

Thomas Olunloyo, CEO of Legal & General Reinsurance said the blockchain is uniquely suited to the long term nature of annuities business. According to him, the technology allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts that can span over 50 years.

In early May, Amazon's cloud platform AWS had announced the general availability of Amazon Managed Blockchain, which it had launched in November last year.

The various companies already using Amazon's blockchain service include AT&T, Nestlé, Accenture, Verizon, Phillips, GE Aviation, Liberty Mutual and Singapore Exchange Ltd., among others.

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