April 5, 2018
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