BLOCKCHAIN
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gradually introduced and strengthened within the space , some firms may get the confidence in the technology they need to reconsider the power of blockchain .”
Despite the seemingly tentative approach to blockchain , the hesitancy revealed by the research is not necessarily borne out by the numbers . According to forecasts from several industry observers , the value of the blockchain in the insurance market is set to skyrocket – from a present valuation of a few hundred million dollars to US $ 20-30bn by the end of the decade .
Unleashing the potential of blockchain in insurance Once we overcome the knowledge gap that seems to persist , there are opportunities to be realised : blockchain will make life more convenient for consumers ; it will drive efficiencies and unlock new revenue streams for insurers ; and it will make the entire process more transparent for all parties .
Richard Dhuny of GFT continues : “ Within the insurance sector , there are some really interesting blockchain applications coming from innovative providers that support more robust data infrastructures , less vulnerable to fraud or human error , as well as delivering greener IT practices .
“ US insurance provider Lemonade , for instance , recently founded the Crypto Climate Coalition alongside other providers . The coalition functions as a decentralised autonomous organisation aimed at building and distributing at-cost parametric weather insurance for farmers and livestock keepers in emerging markets .
“ One key innovation is that Lemonade receives granular weather insights from its partner network , generating models that can be programmed into smart contracts that automatically estimate the accurate premium for insuring crops based on the field ’ s location , size and topography . By
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