U.S. insurance giants State Farm and USAA have entered advanced testing of a blockchain to automate the time-consumingand paper-heavy processing of automobile claims. Announced Thursday, May 30th the companies developed this system using Quorum,the private enterprise version of ethereum created by JPMorgan Chase. Now, the firms are using real claims data and expect to gointo production around the end of this year. The ledger shared by the two companies is designed to replace existing systems for subrogation.This is typically the last phase of the claims process when one insurance company recovers claim costs it paid to itscustomer for damages from the at-fault party’s insurance company. n simple terms: if Bob dents Alice’s car, Alice’s insurer pays her to repairit and then bills Bob’s insurer. Today, these business-to-business payments are handled consecutively, often requiring paper checks to be mailedon a claim-by-claim basis between insurers. To streamline this process, the new blockchain nets out the balance of these payments (which run intothe thousands each month) and facilitates a single payment on a regular basis between insurers.