Legal & General taps Amazon Managed Blockchain service for corporate pension deals

UK insurer Legal & General is collaborating with Amazon to create a blockchain system for corporate pension deals, Reuters reported.

Legal & General is one of the UK’s largest investment managers for corporate pension schemes with more than £1 trillion in total assets under management. It is also recognized as a market leader in pensions de-risking, life insurance, workplace pensions and retirement income.

Through its partnership with Amazon, Legal & General will use Amazon Managed Blockchain Service for handling bulk annuities.

Blockchain suits “the long-term nature of annuities business as 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,” Thomas Olunloyo, CEO of Legal & General Reinsurance, said.

According to the report, Legal & General is launching the blockchain-based platform for bulk annuities outside of Britain and the United States. However, a company spokesman said that the platform could be expanded to these two jurisdictions in the future.

Amazon Web Services, a comprehensive cloud computing platform provided by Amazon, recently announced the general availability of its Amazon Managed Blockchain service. The service makes it easy and cost effective for customers to create and manage secure blockchain networks that can scale to support thousands of applications running millions of transactions.

“With Amazon Managed Blockchain, Legal & General Reinsurance can focus on building new business applications that enrich the experience for their customers and transform their business instead of dealing with the challenges of keeping a blockchain network up and running, all while taking advantage of the security and scalability the service offers,” Rahul Pathak, General Manager, Amazon Managed Blockchain at AWS, said (as quoted by Ledger Insights).

Amazon Managed Blockchain Service currently supports Hyperledger Fabric and is expected to add support for Ethereum later this year.