Blockchain for Insurance
Editorial by Simon Phipps
Like a toddler learning to take its first steps, real blockchain use cases are finally starting to emerge
This month’s InsurTech Insights is focused on blockchain, and potential applications of the underlying technology for our industry. Which is great news for me, as a self-declared fan. I’m convinced we are seeing the emergence of a break-through technology that is going to transform our personal and professional lives forever.
For sure, it’s still very early days. And for sure, the technology has seen a disproportionate level of hype, ‘fake news’ and, more recently, the meteoric rise and subsequent bursting of a significant short-term bubble in the cryptocurrency world. But things are starting to get more serious. Enterprises are sitting up, taking notice, and getting involved. And some of the better startups have got their heads firmly down, ignoring all the hype and, staying 100% focused on creating amazing new ways of addressing problems and opportunities for consumers and businesses around the world.
The global outlook for insurance in socio-economic terms is extremely bright. Yet the industry continues to be burdened with some of the lowest levels of consumer trust of any sector, as well as some of the lowest levels of consumer satisfaction with product and service offerings. Blockchain has the potential to address all these pain points, and many more, as Rick and the team at KPMG explain this month.
Beyond addressing the pain points, which is understandably where a lot of the incumbent interest and development activity currently sits, blockchain also opens up the potential for a whole new world of premium growth across the sector, enabling the industry to service the needs of new groups of customers in very different ways. When positioned alongside developments in areas such as AI, platforms and IoT, the potential applications for blockchain in supporting sector growth as well as efficiency and control gains are hugely exciting. Examples include embedded, short-term and on-demand products, at potentially much lower ticket sizes than we’ve ever seen before, and accelerating advancements in areas such as consumer risk management, as the role of insurers moves on from simply paying claims.
If you’re anything like me, once you’ve entered the rabbit hole, and got your head around just a fraction of the potential for how blockchain may change our world, you’re unlikely to come out again. So enjoy the read, and we look forward to seeing you on our next ChainGang webinar, towards the end of the year.
Simon is TDI’s Head of Asia, Global Development and Blockchain