BISMARCK, ND – North Dakota Department of Insurance (NDID), in connection with North Dakota Department of Transportation (NDDOT), is conducting a proof-of-concept (“POC”) that leverages blockchain technology to identify uninsured drivers.
NDID has chosen AAIS (American Association of Insurance Services) and openIDL open source Linux Foundation Project to conduct POC and identify uninsured drivers in the state.
Recent estimates from 2019 estimate that approximately 13% of vehicles are in North Dakota being driven by uninsured drivers. These estimates are believed to be extremely inaccurate as they are derived from known uninsured claims and therefore do not take into account any uninsured property damage or small claims that result in claims without fault coverage.
NDID is working to reduce the problem of uninsured motorists in the state, but must first have a more accurate assessment of the problem. NDID seeks to utilize blockchain technology to more effectively and efficiently collect the information needed while maintaining the utmost privacy and security of data collected. Blockchain technology is used as a highly secure digital ledger.
NDID is conducting a POC to correlate data from databases maintained by NDDOT as well as personal vehicle operators to compare the number of registered Vehicle Identification Numbers (VINs) with insured VINs. To assist with this POC, NDID has ordered AAISthe national member-focused advisory organization, and openIDL, open source Hyperledger blockchain platform powered by The The Linux Foundation.
NDID is working with auto insurance companies to improve the data available for this POC.
“We are happy to work to find solutions to a problem in North Dakota“, said the insurance manager Jon Godfread. “Working with the openIDL blockchain platform and AAIS will help us see if this technology can help solve the problem through accurate, timely and verifiable information.”
“We applaud Commissioner Godfread for his vision and initiative,” said Ed Kellypresident and CEO of AAIS. “We believe openIDL can streamline regulatory reporting and deliver unparalleled insights, while protecting the proprietary nature of carrier data. Ultimately, we aim to foster more productive collaboration between carriers and regulators to support product development and a healthy insurance market .”
