Insurance company Allianz is working with blokchain startup Adjoint and has tested an internal token called “Allianz token”, reported Coindesk on April 19.
The token is used to send and receive payments between its international affiliates without having issues regarding currency conversion.
A blockchain specialist at Allianz’s reinsurance unit and representative to the B3i insurance blockchain consortium, Oliver Folk, mentioned that the internal token is currently being tested.
He expressed to Coindesk:
“Yes, we are thinking about a kind of Allianz token whereby money coming in will be converted to a token.[…] But it’s a very big animal and we don’t know what kind of regulatory constraints there are.”
Volk also said that it would be a great idea for Allianz to be more independent and to rely less on financial institutions as the Insurance giant would save much more money on commissions.
He added that an “Allianz token” would be “very helpful to get rid of FX constraints and other stuff we have to optimize, especially if you talk to certain currencies which we do not accept at our headquarters and have to be reconverted.”
Allianz Global Corporate & Specialty (ACGS) is behind the project “Allianz token”, which came from an Allianz captive insurance blockchain to expense payments with CitiConnect API from Citigroup.
The innovation program manager for central and eastern Europe at Allianz AGCS, Allan Cabello, expressed the importance of an internal digital token.
“It’s essentially about the legal way of moving money from one side of the world to the other,” Cabello mentioned. “Because of regulation and governance, etc., you need to move it from one entity to the next to the next and that takes time.”
Cabello futher explained,
“It takes time to get every entity to book it, bind it; everybody at their own desk; it takes a lot of effort.[…] Every single major industry and every major company has issues getting money from one side of the world to the other.”
Last week, the Hong Kong Federation of Insurers (HKFI) announced that it was creating a blockchain-based platform for insurance in Hong-Kong.