By enabling the digitization of assets, blockchain technology is driving a fundamental shift from the Internet of information, where we can instantly view, exchange and communicate information to the Internet of value, where we can instantly exchange assets. A new global economy of immediate value transfer is on its way, where big intermediaries no longer play a major role. Blockchain will profoundly disrupt hundreds of industries that rely on intermediaries, including banking, finance, academia, real estate, insurance, legal, healthcare and the public sector — amongst many others.
Blockchain helps insurance sector in providing privacy, borderless reach to make smarter decisions and also deliver insurance with quality. This is due to the features of blockchain that make it possible with the decentralized network. Though blockchain in insurance sector helps the industry to provide a much better service, there are many challenges faced while adopting to blockchain. The question is how far is your insurance company would go to break down these challenges and survive in the market and how well do use these challenges to your advantage.
The future of insurance could flourish through an intelligent adoption of Blockchain, with applications in digital currencies, fraud solutions and smart contracts. Large insurers have the potential to benefit immensely. However, its implementation will mean that insurance companies will have to change their underwriting process, the structure of the policy, as well as risk underwriting.
A trust and efficiency engine like blockchain technology has the potential to drive radical change in the insurance industry while improving transparency and outcomes across the entire value chain. Intermediaries or “trust brokers” do not have to be written out of the equation — or disintermediated — as many blockchain enthusiasts argue. Rather, they can become early adopters of the technology.