Amazon – the online, US-based, e-commerce heavyweight – has announced its collaboration with Legal & General – an insurance agency located in London, UK – to design a blockchain-powered tool that helps manage corporate pension deals.
Reported by Reuters on June 11th, Legal & General will utilize the Managed Blockchain, built by Amazon, to facilitate its bulk annuity tradings – happened when partnering corporations entrust Legal & General to provide insurance for their pension schemes.
According to the Financial Times, the reason behind such bulk annuity transactions is to avoid the responsibility of paying their employees’ pensions themselves.
“… it allows data and transactions to be signed, recorded and maintained in a permanent and secure nature over the lifetime of these contracts, which can span over 50 years.” Legal & General Reinsurance CEO Thomas Olunloyo shared the practical aspect of a blockchain solution, given the longevity of annuities.
Amazon has previously introduced the managed blockchain service, via its subdivision site Amazon Web Services, in April 2019. This blockchain-as-a-service (BaaS) will enable customers to form, as well as maintain, blockchains on the Ethereum and Hyperledger system with ease, by putting various visible features of blockchain management in an automated process.
“…The service takes care of provisioning nodes, setting up the network, managing certificates, and security, and scaling the network.”Rahul Pathak – Amazon Managed Blockchain general manager – further expressed.