Vermont State Government Launching Blockchain Insurance Pilot
The state government announced Friday that the Office of the Vermont Secretary of State and the Vermont Department of Financial Regulation have signed a memorandum of understanding to conduct the pilot that will examine the tech’s potential in digital recordkeeping and registration and regulatory processes.
The trial program will give captive insurers – licensed insurance companies formed by one or more parent entities to provide self coverage – in the state an option to file registration and reporting documents using private blockchain technology. The state government currently maintains paper and digital copies of filed documents.
Vermont aims to create a “transparent and validated” record of transactions through blockchain, as well as reduce costs compared to traditional record-keeping methods.
Jim Condos, Vermont Secretary of State, said in a statement:
The government has already started the process of identifying vendors with technical and consulting expertise for the pilot program, through a Request for Information (RFI) process.
Vermont is one of the leading markets for captive insurance in the U.S., with the state government registering 20-40 new companies in the sector per year, according to the RFI.
The state has launched several blockchain initiatives in the past, including the signing of a bill last May that opened the door for the creation of blockchain-based limited liability companies. And, in January 2018, the city government of South Burlington partnered with blockchain startup Propy to trial a land registration system using the technology.