Blockchain innovation is taking hold in the insurance industry. And, it just might be the rocket fuel for a transformative change in the insurance sector.
Blockchain technology will become the foundational layer for a new way of doing insurance business. Additionally, when combined with artificial intelligence, Internet of Things (IoT) and machine learning, the possibilities are limitless.
The decentralized nature of blockchain technology allows participants to share data securely and on a confidential basis (when needed) which enables novel customer-centric insurance products and streamlined services that are more efficient and provide greater value to clients.
On one end of the spectrum, traditional insurers have organized to create use cases that reconsider traditional insurance operations on a distributed ledger. On the other end, insurance-tech entrepreneurs seek to disrupt the status quo by deploying blockchain technology to reimagine how insurance products are created, funded, and delivered.
So far, the incumbents and entrepreneurs have launched only a handful of new products and use cases deploying blockchain technology. But, momentum is building.
Also, traditional participants in the insurance sector are working together to create high-value blockchain-based solutions that will impact business processes (and lives) through the delivery of better, more efficient insurance-related services. Insurance-tech entrepreneurs also drive change by creating new, smart insurance products that reimagine the very nature of insurance, including the types of risk that can be covered and who may participate in the creation and consumption of insurance. One hopes that the day will come where traditional insurers and entrepreneurs will come together to exchange information and value on a blockchain so that everyone can realize and enjoy the true potential that blockchain technology has to offer insurers and their insureds.