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The UK insurer, Legal & General, is reportedly making moves for pension annuities paid to pensioners to move permanently to blockchain via Amazon Web Services (AWS).
Pension annuities usually last for several years. They could go on for up to 50 years. It is only normal for a contract that lasts that long to be registered in an unalterable and secure platform. And which platform offers such level of transparency and security today besides blockchain? This is why Legal & General are working to move pension annuities to the blocks.
The British legal firm reportedly teamed up with Amazon in its chase for a space in the blocks. The collaboration allows Legal & General to employ smart contracts in the blockchain platform by Amazon Web Services (AWS) in the processing and storage of corporate pension annuities.
Blockchain technology is probably the safest and fastest means of transacting today. Decentralized ledger technology boasts a great level of transparency and safety compared to any other system on the planet today. With blockchain technology, not only will the data of pensioners be stored for several years without fear of losing it, but it also promises features that prevent anyone from altering the details even in years to come. In addition to these amazing qualities, blockchain technology is also known to facilitate transactions at a very speedy rate. Therefore, it is safe to say that it is an all-win solution for corporate companies.
The system is proposed to be used for companies’ defined benefits as well as final salary pension schemes too.
No Blockchain Access to the United States and the United Kingdom
At the moment, Legal & General will deploy this innovative solution to markets outside of the United States and the United Kingdom. However, a spokesman of the legal firm confirmed that the firm could consider extending this platform to the US and the UK in the future.
Commenting on the groundbreaking innovation, the CEO of Legal & General, Thomas Olunloyo, ushered the public into this new era, reminding them of how long pension annuities could last and the importance of having them safely stored on blockchain.
The General Manager of Amazon Managed Blockchain also commented on the project stating that the deal with Legal & General means that they will now “focus on building new business … instead of dealing with the challenges of keeping a Blockchain network up and running.”
Hopefully, this project would go as planned and it would be the first time ever for corporate pension deals to be featured on a blockchain-powered system.