By Becky Downing
Blockchain technology is often touted as the latest Holy Grail for the insurance industry. It has the power to simplify the claims process, alleviate high premiums, and help insurers create niche coverage. That all sounds very impressive. But just how big an impact could this new technology have?
According to a paper published in September 2015 by the World Economic Forum, “ten percent of global gross domestic product will be stored on blockchain technology by 2025”.1 This is very significant. Yet blockchain is never going to realize this potential if it can’t find a fan base beyond the technically-minded.
Many in the insurance industry think the technology is completely overhyped. Arguably, this is the result of a lack of real understanding of what the blockchain is and what it does. If a new technology or innovative concept can’t be understood and consumed by the layman, many will view it as unworthy of their time and attention.
But that doesn’t mean it’s better for insurance companies to sit back and wait for the blockchain to reach a certain level of maturity. Even less so, to wait for the general public to catch up. Waiting too long will allow competitors to innovate their way into permanent competitive advantage and condemn the late adopters to a game of permanent catch-up.
Now is the perfect time to embrace and understand the technology, while it’s still the “new kid on ...