One of the biggest technology buzzwords of recent years is the blockchain. Touted as the ‘next Internet’ for the predicted impact it is set to have on the world, across all industries.
At present, due in part to its connection with cryptocurrency, blockchain seems to be associated more predominantly with the financial industry. However, due to its intrinsic nature, blockchain could be the perfect solution to a host of challenges faced by the insurance industry. And it more than deserves to be given proper evaluation as a potential replacement for the current central database model employed by most insurers.
According to PWC, almost 90% of financial services firms globally, especially the more traditional ones, fear FinTech challengers will chip away at their revenues [1]. Even today, the insurance industry is dominated by traditionalism and entrenched in bureaucracy. Many insurers remain oblivious to the opportunities that technologies such as the blockchain can open up for them, and those that are aware often have to cut through a lot of red tape for change to be implemented. Insurers who wish to remain current or start innovating to stay ahead should experiment with the many ways blockchain can simplify and streamline the way they do business.