According to a recent news release from Vermont.gov, the state’s Department of Financial Regulation (DFR) is combining forces with Secretary of State Jim Condos to explore a new blockchain initiative for the insurance industry.
On January 9, Condos and DFR Commissioner Michael Pieciak released a memo “outlining their collaborative efforts to explore emerging blockchain technology and its use in the digital recordkeeping practices of the captive insurance industry.”
The following day, both offices made a formal request “to identify vendors that may work with the State to launch a pilot program allowing new captive insurance companies to register with the Secretary of State using blockchain technology.”
The goal of this initial program is to test how well blockchain technology is suited to the needs of the state regulatory process.
“Financial services firms are innovating at lightning speed and regulators have an obligation to keep up,” claimed Pieciak. “This partnership with the Secretary of State provides a great opportunity for our teams to become better acquainted with distributed ledger technology and understand how the state and Vermont businesses might benefit.”
The situation in financial services is of particular concern to the state of Vermont, which the release claims to be “the world-wide leader in captive insurance by premium written and third in the world by active licenses.”
The goal for a successful pilot program will be an effective analysis of what regulatory bodies would be most improved by the adoption of a blockchain, ultimately aiming for “more efficient administration of their respective duties while maximizing taxpayer value for Vermont's citizens.”
In this way, Vermont could serve as a trailblazer for the blockchain industry, producing concrete data on what bureaucratic bodies could best be streamlined by a distributed ledger.