The article, Blockchain: Mechanics and Magic, written by risk academic and former Chief Executive Officer of Aon Benfield Analytics, Stephen Mildenhall, highlights some of the ‘surprising capabilities’ of blockchain within the insurance industry and addresses common misunderstandings and inaccuracies.
It argues that while commentators often tout blockchain as a solution to the insurance industry’s processing
and back-office inefficiencies, they are missing its true potential: blockchain technology allows for the re-democratization of data – providing access to data where and when required – and for the reassertion of the individual’s control over their private data.
In this regard, insurers are well-positioned to provide the infrastructure and alternative revenue model that will replace ‘outmoded and insecure centralized networks’ with distributed blockchain solutions. According to the study, this ‘revolutionary model’ represents the true potential of the blockchain for the insurance industry.
It also highlights that, in operating as a database, a blockchain has three potential areas of concern for users: data integrity, data validity, and data security. Addressing each in turn, the article shows that blockchain offers ‘innovative solutions’ in these three areas.
Blockchain: Mechanics and Magic is the first in a series of regular studies to be published under the Global Insurance Market Opportunities banner. The next article, Demystifying Artificial Intelligence, will be available in early August.
Please click the following link to view Blockchain: Mechanics and Magic:
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