Streamlining the Insurance Industry With Blockchain ↦

Fridtjof Detlefs writing for ITPro Portal:

News and hype surrounding the cryptocurrency [Bitcoin] was ubiquitous as speculation abounded. If Bitcoin, then, is the hype, Blockchain has the potential to be the force which drives change not only in our vocabulary, but revolutionises the way we do business.

By allowing digital information to be distributed but not copied, blockchain technology is creating the foundation of a new type of Internet.

Individual insurers across the industry have begun to allocate significant resources to researching and implementing working private blockchain systems. For instance Swiss RE, a leading global insurer, has teamed up with the likes of Allianz, Zurich and Aegon to create a ‘Blockchain Insurance Industry Initiative B3i’ aiming to explore the potential of distributed ledger technologies to better service clients through faster, more convenient and secure services. Expected to go live this year [2018], it is predicted to gain a 30 per cent increase in efficiency compared to traditional processes, achieving this by reducing reconciliation, duplication of work and waiting times.

The Blockchain is the foundation of a new type of Internet. It is astonishing to see how traditional industries such as the insurance one, is investing so heavily in emerging technologies. The benefits for the organisations and their customers are significant, both from a financial and risk mitigation standpoints. The implementation of smart contracts is just one of the many examples to justify the investment.

The launch of the B3i consortium is an excellent example of how vital Blockchain is for the industry.