One of Italy's largest insurance companies announced that the country's Central Bank, Banca d'Italia, has approved the issuance of a blockchain-based digital guarantee to take advantage of the technology's features.
Royal Mutuala whirlpool bath, company Italian insurance company offering life and home and vehicle insurance services, announced the issuance of a digital bond as part of its national program Digital Trustees, in which more than 30 companies from the sector participate. This is the first digital guarantee issued by this company and approved by the Central Bank of Italy based on technology blockchain, which provides a guarantee to the Municipality of Milan for the completion of various reclamation works being carried out in the Cadolini region, Milan.
The need to create a digital guarantee backed by blockchain technology arises from the requirement by government departments and construction contracts for a bond or guarantee to ensure payment for the works, in case the supplier does not comply with the agreement. Considering the high levels of fraud that exist in the country regarding this issue, blockchain technology is presented as a viable and feasible solution for the genuine support of contracts and bonds granted, effectively reducing the levels of corruption and fraud.
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The Director of Reale Lab, Gianluca Lorenzi, announced that:
“Reale Group continues to invest in innovation, with the firm conviction that understanding and monitoring the main trends in the evolution of the company, the market and the insurance sector is one of the key factors for success in the future… Blockchain technology will bring significant advantages throughout the entire value chain.”
For his part, the company's Special Risks Manager, Mauro Gentini, also stated that the issuance of this guarantee is a major step towards the evolution of Reale Mutua, which will accelerate the innovation and development process of the Reale Group, to become pioneers in applications against fraud and corruption in contracting systems and the construction of works.
“By issuing our first digital guarantee on blockchain, we aim to be proactive and pioneer in this collaboration. Further developments will enable us to prevent fraud and improve operational efficiency.”
The successful implementation of blockchain technology in the issuance of digital bonds will undoubtedly bring great and important benefits to the insurance sector, allowing for the development of a new technological and innovative approach in this business model.
About Reale Mutua
La Società Reale Mutua di Assicurazioni is an Italian life, home and vehicle insurance company founded in 1828. Reale Mutua is the main company of the Reale Group, which has more than 3.700 employees and 5 million customers worldwide.
The program Digital Trustees Reale Mutua is driven by organizations such as the Bank of Italy, CeTIF, SIA, Reply e IVASS, as well as the Reale Group Innovation Centre, Reale Lab 1828 and the Special Risks Department. The latter are among the first organisations to develop the idea of digitalising guarantees and sureties in Italy.
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