Two Vermont state agencies, the office of the Vermont Secretary of State (SoS) & the Vermont Dept. of Financial Regulation (DFR), in a recent press release on Friday, Jan. 11th 2019, announced a collaborative blockchain pilot program to leverage the blockchain tech to aid the captive insurance industry.
Jim Condos, the Secretary of State and Michael Pieciak, Commissioner DFR, signed a Memorandum of Understanding (MoU) to explore the blockchain tech and its use cases in deploying best practices for the digital recordkeeping to aid the captive insurance sector.
Captive insurance, an alternative to self-insurance, facilitates a parent group or groups of companies to establish a licensed insurance company that provides insurance coverage for them, thus helping the parent group or groups to self-insure themselves, by mitigating their own risks and help manage those astoundingly big insurance premiums.
According to Secretary Condos, leveraging the technology trends and developments, govt. can improve efficiency and transparency, cut red tape, and improve services for the residents of the state of Vermont. The blockchain pilot project will provide true insights if or not the blockchain tech for digital recordkeeping can help improve the state regulatory process.
According to Commissioner Pieciak, the pace at which fintech industry is growing is blazing fast and state regulators have an obligation to keep up. The partnership with the office of Vermont Secretary of State paves way for new opportunities to better the dept.’s understanding of the distributed ledger technology and determine how the businesses in the Vermont state might benefit.