Skip to content

The insurance sector is analyzing the potential of blockchain technology

October 26, 2020

The insurance sector is analyzing the potential of blockchain technology and its transformation possibilities. This was stated on October 22nd on the Inese portal from Spain.

In an article published by this portal, they quoted Juan Mazzini, senior analyst at Celent, who pointed out: “The transformative possibility of blockchain for insurance companies is being examined in detail. Many examples of potential applications published so far describe a very broad vision that spans the entire insurance value chain”.

Then he added: “This is the case when blockchain is used to internalize the industry, set up new point-to-point exchanges, etc. These scenarios suggest a major substitution of the current value chain or describe a new exchange that works in parallel with the existing traditional approach .”.

The insurance sector is analyzing the potential of blockchain technology
The insurance sector is analyzing the potential of blockchain technology

On the other hand, highlighted a study conducted between Inese and Celent entitled “The ABCD of Technology: Practical Application of Emerging Technologies in Insurance Companies,” in which Mazzini noted, “The initial value of blockchain in insurance will result from initiatives that are much smaller . ” .

According to the article, The benefits result from the elimination of information discontinuities or friction between different parties in existing business processes. This would happen instead of creating value from a new exchange.

Mazzini stated: “The main objective will be to reduce or eliminate the service gaps and inefficiencies that have traditionally been tolerated as the inherent costs of insurance transactions: long waiting times, high settlement costs, lengthy factual negotiations, etc.”

Some possibilities

The post also included examples of blockchain usage in insurance. In this context they mentioned Digital identity, payments, co-insurance, reinsurance, proof of the existence of the insurance and other products (e.g. those based on the Internet of Things, P2P or parameters).

You might be interested in: