The Impact of Blockchain on the Insurance Industry

There are 560+ blockchain startups operating around the world. The technology brought out an exciting dimension to the way businesses operate with a plethora of use cases built around transparent data sharing, record keeping, decentralization, consensus-based authentication, and smart contract-based decisioning. The industry is slowly but surely moving from research to PoCs and implementation. A very limited number of applications and PoCs make it worth the shift into the production phase, but those cases are rather impressive. The insurance industry, in particular, has a vast potential for blockchain-driven innovations solving multiple pain points across the insurance value chain, owing to its reliance on disparate systems involving multiple participants with a high scope of data sharing.

Diwakar Mandal, MEDICI, analyzed blockchain projects and prototypes by 27 large insurance incumbents globally, and identified two predominant blockchain use cases and areas of applications in the insurance world: policy administration and automated payout – with 30.3% and 21.2% of blockchain projects respectively. Claims management/verification, new product/platform development, and record keeping were the other key areas where insurance incumbents are developing blockchain applications.\ \


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