Emerging Blockchain Innovations in Insurance — I

Blockchain technology promises a secure way of authenticating, storing, managing, and protecting information, identities, transactions, and more — that can be updated in real-time. But its potential for delivering useful applications for insurance will depend on the development of the technology itself.

Deloitte I Global Blockchain Survey I 2019

A Quick Primer on Blockchain

A blockchain is a way of storing data where the data is distributed across many computers. It is a form of an open, distributed ledger, which may be decentralized with no one central administrator, and information may be authenticated via a peer-to-peer system. Pretty much anything can be stored on a blockchain, from financial transactions and contracts to supply chain information and medical data.

Blockchain Technology & Insurance

Blockchain displays strong potential at the intersection of emerging technologies — Internet of Things (IoT), artificial intelligence (AI), and quantum computing. In the medium and short term, there are four features of blockchain which can transform and enhance insurance ecosystems.

PWC I Blockchain a Catalyst for New Approaches in Insurance

01 Decentralized Ledger Technology (DLT)

Blockchain’s Decentralized ledger technology or DLT helps in bringing all parties on one common platform which simplifies the quote and claim processes. Industry perceptions of blockchain are evolving and insurers are beginning to understand the true value of DLT. It is a potential catalyst for complete insurance ecosystem transformation.

02 Smart Contracts

Smart contracts are digital protocols where various parameters are set in advance and when satisfied, can execute various tasks without human intervention. Smart contracts use blockchain technology to turn paper contracts into programmable code that can automate claims processing and calculate liabilities in insurance for all players involved, while maintaining a secure and permanent audit trail.

03 Peer-to-Peer Insurance (P2P)

Accenture I Technology Vision for Insurance

04 Data Storage and Exchange

Blockchain is hailed as the technology that provides more secure and traceable records compared with current storage means. Data storage and exchange are feasible blockchain applications for insurance at this stage. The technical advantages of blockchain are quite clear in data exchange efficiencies and larger-scale data acquisition.

The Blockchain Disruption

Blockchain is well placed to disrupt existing business models in several ways. From minimizing identity theft, automation of existing time-consuming processes like identity validation to easier and faster claims processing by authenticating transactions, policies, and consumers using smart contracts, the possibilities are quite tangible.

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