The Insurer of the Future - Part 4

For new entrants, blockchain will be at the core of their business model and operating model. For incumbents, it will be a "bolt-on."

This is the fourth in a series. You can find the first three parts here, here and here. The Insurer of the Future’s use of blockchain will depend on whether it is a new entrant or a traditional player. For new entrants, blockchain will be at the core of both their business model and their operating model. The insurer will use blockchain to:
  • Underpin a series of smart-contract-enabled parametric insurance products (if event X happens, and "oracle" Y confirms that, then pre-agreed sum of money Z is paid out automatically); and
  • Maintain secure policy records significantly more cheaply than its legacy competitors.
If the Insurer of the Future was a traditional player, it’s more likely to be using blockchain as a "bolt on," supporting new products that wouldn’t otherwise be cost-effective. The insurer might, for example, use blockchain ledgers to support micro-insurance policies. An example could be insuring jewelry just for the time its owner plans to wear it this evening. Or providing top-up insurance to participants in the gig economy, lasting just for the length of each gig. See also: Blockchain: Basis for Tomorrow   But whether the Insurer of the Future is a new entrant or an existing insurer, blockchain will be just one of a number of new tools at its disposal. This is one area in which new technology will be incremental to the industry rather than truly disruptive. Unless you think otherwise?

Alan Walker

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Alan Walker

Alan Walker is an international thought leader, strategist and implementer, currently based in the U.S., on insurance digital transformation.


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