Blockchain in the Insurance Sector – PwC Report
Article Synopsis :
Blockchain offers more reliable and secure transactions faster and more cheaply whilst reducing risk and fraud. Quite the value proposition.
In “Blockchain in the Insurance Sector”, PwC provides key metrics on blockchain adoption and a discussion on how the the technology may transform various insurance functions.
Over $1 billion has been invested in blockchain companies since the technology’s creation in 2009, with a 59% increase in 2016. Use cases for blockchain in insurance include:
- Claims Management: Redressals handled in a more effective and efficient manner, i.e., placing customers in control with enhanced transparency and fraud reduction and improved service and flexibility.
- Subrogation: Providing a shared mechanism for insurers to manage the subrogation process handling inter-company claims faster, cheaper, and with higher resilience.
- Policy Placement: Automating the placement of wholesale markets with reduction in duplication and more accurate information capture with a full audit history of every transaction.
Blockchain doesn’t present the solution to every industry problem. Its successful application in targeted areas will depend on organizational strategy, technology landscape, and regulatory considerations.
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Digital Insurer's CommentsBlockchain is an interesting technology, and its inherent nature (decentralized, dis-intermediated and transparent) makes it suitable for application in any multi-stakeholder environment – such as insurance.
Insurers need to work in an agile and coordinated way to develop reliable and sustainable blockchain solutions. A recommended next step is to identify a group of like-minded firms and form a consortium to investigate blockchain business cases as is being done by Zhong An with its blockchain open platform initiative in China.
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