Advancing insurance to the digital age with blockchain
If you are among those smartphone users (80%) that check their mobile devices within 15 minutes of waking up each morning you know that technology dominates our lives. If your business struggles to attract the best talent and faces ever more demanding customers, then you know as well how crucial digital transformation is for your business. It determines how you connect and interact with your clients, partners, employees, shareholders.
Recently, the message to the insurance industry has been that cooperation needs to become more efficient, and that the faster path to this is by moving to the digital space. Brokers, insurers, regulators and technology partners are expected to work together to uplift digital skills and enhance processes to transact digitally and in real time.
The cooperation of ecosystem is also promoted by Lloyds of London. The third cohort of the Lloyd’s Lab is focussed on companies that can populate our ecosystem of services including services relevant to the Next Generation Claims Service and the Syndicate in a Box.
As we can read in an Accenture blog; new technologies are catalysts for change, offering extraordinary new businesses capabilities. Distributed ledger technology, Artificial Intelligence, extended reality and quantum computing—or what Accenture calls DARQ—will be the next set of new technologies to spark a step change, letting businesses reimagine entire industries.
Artificial Intelligence, extended reality and quantum computing—or what Accenture calls DARQ—will be the next set of new technologies to spark a step change, letting businesses reimagine entire industries.
Blockchain is a revolutionary technology which brings tangible benefits and solves real problems. That is thanks to unique characteristics of the distributed technology including decentralisation, immutability, transparency, durability, safety. It can improve the efficiency of a whole value chain (for insurers, MGAs, brokers and their customers) across intermediate insurance market.
From first-hand experience, at Blocksure, we see that blockchain dramatically improves the working processes between all parties and across most areas in the insurance value chain. As a technology company we focus on enabling the industry to transact, that includes also transferring data, documents, processing payments, reconciliations and settlements, electronically.
Blockchain is a revolutionary technology which brings tangible benefits and solves real problems. That is thanks to unique characteristics of the distributed technology including decentralisation, immutability, transparency, durability, safety. It can improve the efficiency of a whole value chain (for insurers, MGAs, brokers and their customers) across intermediate insurance market.
From first-hand experience, at Blocksure, we see that blockchain dramatically improves the working processes between all parties and across most areas in the insurance value chain. As a technology company we focus on enabling the industry to transact, that includes also transferring data, documents, processing payments, reconciliations and settlements, electronically.
Last year we enabled Commercial and General to launch a tenant content insurance product, underwritten by Covea. The broker has confirmed that they it will result in reducing processing and operational costs by up to 90%. Our blockchain based platform we have created enabled the whole value chain to stay in sync with single data view, whilst still having their own data sets. The process of buying or amending a policy, making a claim and all supporting activities is much simpler and more efficiently completed with the majority of frictional costs removed. It is a brand-new product which C&G was able to launch it in a few weeks. That is including integration with existing platform.
Distributed ledger technology and smart contracts can be deployed to great effect, improving insurers’ ROE. Working with our clients we witness how they significantly reduce cost of distribution (which is on average 30%-60% of premium) by using our platform.
Read the rest of the article in our blockchain eMagazine...
