BLOCKCHAIN
HOW WILL BLOCKCHAIN
TECHNOLOGY RESHAPE THE
INSURANCE MARKET ?
Blockchain has the power to completely transform insurance , but are business leaders on board and how do we unleash its full potential ?
WRITTEN BY : ALEX CLERE
Blockchain technology is one of the most exciting new frontiers for insurance , having the potential to fundamentally transform the way consumers protect their prized assets .
To understand the benefits it can bring to insurers and insureds alike , we must first understand the technology that underpins it .
The blockchain , in its simplest sense , is a network of computers used to store data securely . Because it is a network and not a central authority – like a bank or insurer – any changes to the data must be agreed right across the network for it to be accepted , hence why the blockchain is often described as a ‘ truth platform ’.
Nish Kotecha , Chairman of blockchain firm Finboot , says : “ By storing data on the blockchain , insurance companies can reduce the risk of human error when completing tasks like processing claims or updating records . For example , someone could forget to switch out a name on an insurance policy . When trying to find the original policy , they might accidentally process it with someone else ’ s information , creating a dispute down the line . Human error makes paying out for claims very difficult – and claims are often processed manually rather than by machine , increasing room for error .” The consensus of information that exists across the blockchain is
68 March 2023