Sompo Japan Nipponkoa Holdings Inc., a Japanese insurance holdings company, has announced that in collaboration with a blockchain identity platform Soramitsu Co., Ltd., the company has started trialing the use of the distributed ledger technology for derivative products.

According to the official release, the collaboration will start developing systems that are currently in beta version for user trials, utilizing blockchain technology in order to provide customers with highly suitable derivative products and services.

“Since the use of blockchain technology has potential to enable provision of highly secure financial services and improve service efficiency while controlling system investment costs, Sompo Holdings, and Soramitsu will also examine a broader application of the technology to new insurance products,” the release stated.

‘The Derivative System Using Blockchain Technology’ project aims to create a service that shares data such as contract details on the blockchain. It will swiftly as well as accurately carry out every step in the insurance process from risk management for derivative products to determining whether or not to pay out on claims and applying the procedures to pay compensation.

Sompo Holdings will be developing products and services using latest digital technologies like blockchain in order to contribute to the safety, security, and health of the customers.

Established in February this year, blockchain startup Soramitsu develops identity platforms and also contributes to the development of blockchain technology through its participation in the Hyperledger Project.