April 5, 2018
The Council had the opportunity to attend the annual DC Blockchain Summit, hosted by the Chamber of Digital Commerce. While it is clear blockchain remains in its infancy, especially for commercial uses, the technology has the potential to increase transparency, cut costs and streamline inefficiencies along the insurance value chain. Experts estimate that blockchain technology could save the insurance industry up to 30 percent in administrative costs alone.
Insurance aside, blockchain technology addresses a number of existing challenges the online world faces, such as systemic risk and resilience, the problem of identity verification, the protection of critical data, and ensuring that users of technology retain control of their data. Privacy, security and transparency are three inherent components of blockchain technology that will likely transform the way data is stored and shared.
At the Summit, Microsoft, in partnership with The Chamber of Digital Commerce, released its whitepaper: Advancing Blockchain Cybersecurity. In the video below, Aaron Kleiner of Microsoft addresses how blockchain can improve the state of global cybersecurity and how Microsoft plans to enable the use of blockchain among governments and enterprises around the world.
The Full Presentation can be found here:
What is Blockchain?
Scroll down, we’ve got an explanation down below.
Leveraging Data to Asses Cyber Risk
The Council recently sat down with Jonathan Pope, CEO of Corax, a cyber-risk analytics platform and broker tool for cyber insurance distribution. Pope addresses some of struggles that brokers and carriers face when selling and pricing cyber coverage, the lack of historical data in the cyber industry, and what needs to happen for the cyber insurance market to mature.
Headquartered in London, Corax uses open source data and its proprietary algorithm to help brokers understand and asses potential clients’ cyber risk, and can do this by solely entering the organizations domain name. In a matter of minutes or less, Corax provides a “cyber risk score” with details regarding the organizations’ cyber risk posture.
Bon Appétit!: Cyber Regs Are a Mouthful
Business and trade associations have long argued that companies can manage their cyber-security programs without government interference. Those groups seem perilously close to losing the argument.
Cybering Up for Your Safety
After a number of significant cyber attacks last year, many organizations are looking for ways to make 2018 a “cyber secure” year. But coming up with a list of solutions to improve an organization’s security posture is no easy task. This 15-step program will help you recover from unsafe practices
Verisk Predicts $4.1B Cyber Liability Market by 2020
Numerous studies estimate an exponential increase in cyber insurance take-up rate, despite staggering cyber insurance take-up rates over the past three years, according to The Council of Insurance Agents & Brokers’ biannual Cyber Market Watch Survey. Survey results indicate the small commercial sector has the most opportunity for growth.
Kroll’s Global Fraud & Risk Report Finds Cyber Incident Levels at All-Time High
According to survey results (link PDF), 86 percent of surveyed executives said their company experienced a cyber-incident or information/data theft, loss, or attack in the last 12 months.
What We’re Reading
In The News
What is Blockchain?
Blockchain technology allows for the recording of data—transactions, contracts, agreements—in a way that means the data is simultaneously stored, but also updated in real time—on hundreds or even thousands of computers globally. Blockchain technology makes the data almost impossible to tamper with or hack into, yet each transaction is updated instantly for every user, while still encrypting the content behind each transaction.
Blockchain’s evolution began with bitcoin in 2009, and since then, the combined market cap for cryptocurrencies has nearly reached $1 trillion. However, the technology expands far beyond cryptocurrencies, as many industries, including insurance, are experimenting with potential use cases to cut costs, increase transparency, and streamline current inefficiencies.
In 2016, commercial organizations began research and experimentation with blockchain technology. In 2017, Industry consortiums formed in the commercial space and organizations moved towards proof of concept trials. By the end of 2018, we expect to see real meaningful use cases brought into production and some major developments in blockchain insurance community.
Experts estimate that blockchain technology could save the insurance industry up to 30 percent in administrative costs alone. In fact, across all industries, including those of your clients, organizations are exploring ways to use blockchain to streamline the flow and verification of data, cut operation costs, ease compliance burdens, enhance the customer experience and remove the need for intermediation.
The Council, in partnership with The Institutes, launched its Blockchain & Insurance Series in March to educate members on blockchain technology and explore current and potential use cases of blockchain in insurance.
For more information on The Council’s Blockchain & Insurance Series, or The Council’s current blockchain efforts, contact Rob Boyce at Robert.Boyce@ciab.com
More on blockchain in insurance:
How Blockchain Will Transform the Customer Experience in Insurance
Blockchain Technology for Digital Identities and Data Sharing (Tip – start around the 5 minute mark)