HOW WILL BLOCKCHAIN TECHNOLOGY RESHAPE THE INSURANCE MARKET?

Blockchain has the power to completely transform insurance, but are business leaders on board and how do we unleash its full potential?

WRITTEN BY: ALEX CLERE

Blockchain technology is one of the most exciting new frontiers for insurance, having the potential to fundamentally transform the way consumers protect their prized assets.

To understand the benefits it can bring to insurers and insureds alike, we must first understand the technology that underpins it.

The blockchain, in its simplest sense, is a network of computers used to store data securely. Because it is a network and not a central authority – like a bank or insurer – any changes to the data must be agreed right across the network for it to be accepted, hence why the blockchain is often described as a ‘truth platform’.

Nish Kotecha, Chairman of blockchain firm Finboot, says: “By storing data on the blockchain, insurance companies can reduce the risk of human error when completing tasks like processing claims or updating records. For example, someone could forget to switch out a name on an insurance policy. When trying to find the original policy, they might accidentally process it with someone else’s information, creating a dispute down the line. Human error makes paying out for claims very difficult – and claims are often processed manually rather than by machine, increasing room for error.”

The consensus of information that exists across the blockchain is