FAHM Technology Partners: Blockchain in Insurance

Iqbal Khan, Managing Director, FAHM Technology PartnersIqbal Khan, Managing Director
Blockchain technology has an ambitious potential to deliver long-term transformations in the insurance industry. Establishing new financial services infrastructure and processes, this technology is driving efficiency and simplicity resulting in higher momentum and more investments by the insurance industry in blockchain technology. It has aided the insurance industry to evolve by streamlining processes and meeting the demands of digitally savvy customers. In the current insurance industry landscape, blockchain technology mitigates a number of issues such as fraudulent claims activity and third-party payment transactions by providing a public ledger across multiple unknown parties.

For almost two decades, Ontario, Canada-based FAHM Technology Partners has been designing elegant enterprise technology solutions from strategy to deployment. Among its long list of IT solutions, FAHM specializes in developing blockchain applications having a decentralized digital repository that can independently verify the authenticity of customers, policies, and transactions by providing a complete historical record. Establishing an efficient, transparent and customer-focused claims model based on higher degrees of trust, a distributed ledger can enable the insurer and third parties to access and update relevant information easily. As more devices are connected to the IoT, the increased amount of data will be highly valuable to insurers. With blockchain, large complex networks can be managed by having the devices communicate securely to each other on a peer-to-peer basis instead of building an expensive data center to handle the load.

The company has done a lot of legwork by making blockchain technology consumable for customers or industries who want a private blockchain with an optimum level of security and governance. Through blockchain, insurers can gain clear visibility into their reinsurance contracts and risk exposures based on actual participating contracts and automatic calculation updates.

With our blockchain innovation, we ensure traceability, transparency, and security

A blockchain ledger can provide insight and notification if one of the reinsurers intends to offload some of its risk-portions to a subsidiary of the other reinsurer. The firm is essentially using Hyperledger Fabric as a product. With a ledger and smart contracts, Hyperledger—hosted by the Linux Foundation—is an open source global collaborative effort created to advance cross-industry blockchain technologies by leaders in finance, banking, IoT, supply chain, manufacturing, and technology.

In the blockchain market, speed is of the essence, and FAHM aims to achieve an accelerated delivery strategy with minimum time to market. Simply put, the firm provides the solution in easy-going steps right from the evaluation of the idea to the final step of delivery. The organization indulges in the production of the solution and design after analyzing the validity, benefit, and cost of ownership of an idea by subject matter experts. In comparison with the industry standards, the delivery of the solution is much faster. During the production phase, the firm works with the clients on their strategies and depending on their goals, aids them in implementing the new solution by adopting, either, the big bang method or in a more subtle way, to gain market momentum. Instead of implementing the private blockchain right away, customers can also reduce the cost of ownership by getting a subscription model or using the software/blockchain-as-a-service offered by FAHM. For continuous improvement processes around the entire solution, the firm also acts as a leading edge DevOps shop coupled with its own support.

Focusing on the distributed ledger aspect of blockchain technology, FAHM is working comprehensively on solutions integrated with the Hyperledger Fabric framework for the insurance industry. The firm is aiming to contribute heavily to the open source community as a token of goodwill—to spare newcomers from developing a private blockchain from the grass-root level. “With our blockchain innovation, we ensure traceability, transparency, and security,” says Iqbal Khan, Managing Director at FAHM Technology Partners. Over the next 12 months, the firm will aggressively work on strengthening and securing private blockchain by building more rich assets around it to provide customers and the insurance industry with a lot of new functions, rapidly.