State Farm is in the process of creating a blockchain application to assist in subrogation, leveraging open-source software, in an attempt to create efficiencies in a system it found to be full of redundancies. Innovation executive Mike Fields will detail the carriers journey in a presentation at Dig | In: The Digital Future of Insurance, taking place May 29 to 31, in Austin, Texas. Fields said the company has seen “a lot of promise” during phase one testing. “We think we have a compelling story,” he says. Phase one was a proof of concept example undertaken with another carrier, followed by shadow testing in phase two; in which everything will be run in parallel with the other carrier, except for payments, which will be followed by an audit. Phase three will involve undertaking the process in the real world “with one or a few carriers,” and phase four would involve a “more widespread” endeavor that would require the participation of several other carriers, according to Fields.
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