Blockchain Is Technological Evolution That Will Create Insurance, Reinsurance Revolution
Blockchain technology is moving out of the lab and into the insurance business. It’s moving past the hype phase and is edging closer to providing real-life efficiency improvements for the industry.
It’s been a slow and evolutionary process—one that ultimately will create a revolution for the insurance and reinsurance industry.
Blockchain is a term that was little known four years ago unless you were involved in the world of cryptocurrencies such as bitcoin. It is the technology platform upon which cryptocurrencies are built and has been around for some 10 years.
According to the “Gartner Hype Cycle for Emerging Technologies,” blockchain is now moving out of the peak of the hype phase. But this does not necessarily mean it is closer to reality—a view that was shared by Fitch in an April 2018 report.
“Most insurers are taking a wait-and-see approach to blockchain—staying informed on development trends but waiting for greater usage to emerge in anticipation of leveraging knowledge gained by others,” said the Fitch report, titled “Blockchain and Insurance—The Trust Machine.”
As most companies don’t reveal the extent of their blockchain development activities for commercial reasons, it is difficult to judge how close the market is to the reality of deploying the technology. That said, you could probably surmise that for every visible proof of concept (POC), there will be nine or more under the radar.
Excerpt taken from Carrier Management, continue reading on the Carrier Management website.
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