https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ADistributed_ledger_technology_%28DLT%29 2026-04-29T10:31:15Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Distributed_ledger_technology_(DLT)&diff=6826&oldid=prev 2026-03-10T04:50:50Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>🔗 &#039;&#039;&#039;Distributed ledger technology (DLT)&#039;&#039;&#039; is a category of digital infrastructure in which transaction records are maintained across multiple nodes in a decentralized network rather than in a single central database. In insurance, DLT has attracted attention for its potential to create shared, tamper-resistant records of [[Definition:Policy | policy]] data, [[Definition:Claim | claims]] information, and [[Definition:Reinsurance | reinsurance]] contract terms — reducing reconciliation burdens and increasing trust among counterparties who historically rely on separate, siloed systems.<br /> <br /> ⚙️ Implementations in the insurance sector have taken several forms. Blockchain-based platforms — blockchain being the most widely known variety of DLT — have been piloted for [[Definition:Parametric insurance | parametric insurance]] products, where a [[Definition:Smart contract | smart contract]] automatically triggers a [[Definition:Claim payment | payout]] when an agreed data threshold is met (such as an earthquake exceeding a specified magnitude). Consortia like B3i (now succeeded by other initiatives) explored using DLT to streamline [[Definition:Reinsurance | reinsurance]] placement and [[Definition:Bordereaux | bordereaux]] reporting, aiming to replace manual data exchanges between [[Definition:Cedent | cedents]], [[Definition:Reinsurer | reinsurers]], and [[Definition:Insurance broker | brokers]]. Other use cases include verifiable proof of coverage, [[Definition:Subrogation | subrogation]] tracking, and [[Definition:Fraud detection | fraud detection]] through shared claims databases that multiple carriers can query without exposing proprietary information.<br /> <br /> 💡 Despite promising pilots, widespread production-grade adoption in insurance remains limited, constrained by scalability concerns, [[Definition:Insurance regulation | regulatory]] uncertainty, data privacy requirements, and the practical challenge of getting competitors to share infrastructure. Still, DLT&#039;s core value proposition — a single source of truth accessible to all authorized parties — directly addresses chronic inefficiencies in an industry built on multi-party contracts and layered [[Definition:Risk transfer | risk transfer]]. As [[Definition:Insurtech | insurtech]] companies continue refining interoperability standards and regulators offer clearer guidance, DLT is likely to find durable niches rather than serve as a wholesale replacement for existing systems.<br /> <br /> &#039;&#039;&#039;Related concepts&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Blockchain]]<br /> * [[Definition:Smart contract]]<br /> * [[Definition:Parametric insurance]]<br /> * [[Definition:Insurtech]]<br /> * [[Definition:Reinsurance]]<br /> * [[Definition:Fraud detection]]<br /> {{Div col end}}</div>

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