Two of the biggest names in the title insurance are joining to bring blockchain to the title insurance industry.
First American financial Wednesday announced that it is launching a shared blockchain system to be used in the title assurance process. And the first company to sign up to use the First American blockchain system is Old Republic Title Insurance Group, the third largest insurance underwriter of the nation's title.
The blockchain system, which First American designed, is intended to facilitate the exchange of social security insurance policies between underwriters contributing to the system, said First American.
According to First American, the blockchain system "will increase efficiency, reduce risk and improve the production process of the stock".
First American said that every insurance policy by title in the system will be coded with a unique identifier for property, which should streamline the search process and increase the accuracy of searches for insurance policies of the previous title.
According to First American, it is common practice for subscribers of title insurance to share information on politics, as it increases both efficiency and risk reduction. First American claims that its new blockchain system will base this industrial practice with "emerging technology" to further increase efficiency and reduce risk.
The transition to the blockchain should not be a surprise. People in the industry have publicized the potential benefits of blockchain for real estate for some time.
Blockchain provides an immutable ledger, with time stamp that is apparently safer than traditional systems because it is run by a large computer network, rather than a central server.
Once the data is shared on a blockchain, all the parts on the blockchain can see if any changes are made. Therefore, it is much less likely to be hacked than a central server or a single account.
And now, First American is bringing the blockchain to the insurance sector of the title.
"The first American has a long history of innovation and our development of this system demonstrates our ongoing commitment to applying cutting-edge technologies that reduce risks and improve the real estate transaction process," said the first American CEO Dennis Gilmore.
"There is the possibility of creating a solid exchange of information on the insurance policy of the stock offering greater transparency, efficiency and accountability to the industry and better closure experience for consumers," added Gilmore.