ANZ will further investigate uses for blockchain in the New Zealand insurance market after completing an early-stage concept test with Suncorp and technology partner IBM.

Issues addressed in the proof-of-concept exercise included reconciliation for bulk payments by brokers to insurers, which are summarised in bordereau statements.

An ANZ white paper on the test says the technology provides a “single source of truth” for brokers and insurers, smoothing the process and eliminating the exchange of manually created documents.

“We are now sharing our blockchain project with the wider insurance industry,” ANZ Institutional New Zealand Director Matt Hearley told insuranceNEWS.com.au.

“The next stage is piloting a full, functioning solution for a single risk type.”

ANZ says it has received positive feedback from the industry, but several challenges remain before blockchain can be introduced widely.

“The main challenge is connecting the blockchain to existing systems used in the industry,” Mr Hearley said. “We’re working on this and the results will impact the time it takes to move the solution into production.”

A Suncorp New Zealand spokesman says the company will consider the proof-of-concept results to determine if it will take the initiative further.

“We’re always looking at ways to generate operational efficiencies,” Suncorp New Zealand CFO Tim Buckett said.

“The proof of concept was an exciting way to test whether a technology solution can speed up the reconciliation process for insurance premium payments while… improving the customer experience for policyholders and our business partners.”