ND Insurance Dept to analyze blockchain technology
BISMARCK, ND (NDID) – The North Dakota Insurance Department (NDID), in partnership with the North Dakota Department of Transportation (NDDOT), is conducting a proof-of-concept (POC) that leverages blockchain technology to identify uninsured drivers.
NDID has selected the American Association of Insurance Services (AAIS) and the openIDL open-source Linux Foundation Project to conduct (POC) and identify uninsured drivers in the state.
Recent estimates from 2019 state that approximately 13% of vehicles in North Dakota are driven by uninsured drivers. These estimates are believed to be extremely inaccurate since they are derived from known uninsured claims and 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 commissioned AAIS, the national member-focused advisory organization, and openIDL, the open source Hyperledger blockchain platform operated by The Linux Foundation.
NDID is working with auto insurance companies to improve the data available for this POC.
“We are pleased to be working to find solutions to a problem in North Dakota,” said Insurance Commissioner 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 Kelly, AAIS President and CEO. “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 .”
