The Vermont state government is starting a blockchain pilot project for the insurance industry.
The state government declared Friday that the Vermont Department of Financial Regulation and the Office of Vermont Secretary of State have signed a MoU to conduct the pilot that will measure the tech’s potential in digital recordkeeping and registration and regulatory processes.
The trial program will give captive insurers licensed insurance companies formed by one or more parent entities to provide self-coverage – in the state an option to file registration and reporting documents using private blockchain. The state government presently maintains paper and digital copies of recorded documents.
Vermont intends to form a “transparent and validated” record of transactions through blockchain, and reduce costs compared to traditional record-keeping methods.
Jim Apartment suites, Vermont Secretary of State, told in an announcement:
“This pilot will enable us to examine whether or not the application of blockchain tech for digital recordkeeping can enhance aspects of the state regulatory process.”
The government has already commenced the process of identifying vendors with technical and consulting expertise for the pilot program, through a Request for Information (RFI) process.
As per RFI Vermont is one of the best markets for captive insurance in the US, with the state government registering 20-40 new firms in the sector per year.
The state has begun many blockchain initiatives in the past, including the signing of a bill last May that opened the door for the creation of blockchain-powered limited liability companies. And, in January 2018, the city government of South Burlington collaborated with blockchain startup Propy to pilot a land registration system employing the technology.