With its potential to streamline complex processes and the capacity to enhance transparency and efficiency, Blockchain technology is well positioned to provide modernised insurance to a new generation of consumer.
The features inherent in the technology lend themselves perfectly to the insurance sector and are ideal for the technology’s implementation, with potential benefits for both the insurer and insured across the value chain including: maintaining the integrity of data across multiple ledgers; peace of mind for end-users as to the accuracy and integrity of data being stored; more efficient yet comprehensive KYC processes and real-time settlement of claims through the use of smart contracts.
While the benefits are numerous, the process of migrating to the Blockchain necessitates careful planning, investment and a predisposition to welcome radical changes to legacy systems and responsibilities. An understanding of the potential risks associated with deploying the technology is also crucial. As with any industry to which the use of Blockchain represents an opportunity for improvement, the risks to which the technology is susceptible must be clearly thought out and, to the... Full article