Blockchain is rapidly becoming an area of focus for people in all industries. The potential applications of the technology seem endless.
Sizing the blockchain opportunity
Calling Brian Cox… perhaps we could borrow his big brain to help us determine the size of the blockchain opportunity?
The reality is we are exploring opportunities on a daily basis but, as with all things new, there are:
- Those who get on board early and gain first-mover advantage, helping to shape what is to come.
- And the followers, who want to see others do the testing.
Every day there are more examples of blockchain case studies and real life scenarios of blockchain use. There is an increasing groundswell of interest and as understanding grows, the confidence curve goes up.
The unique features of blockchain will have more relevance for particular industries. The insurance sector is one of those where we expect to see dramatic impact – it is the perfect fit.
Look back at the history of creativity of brokers, insurers and Lloyd’s of London. This innovation to constantly differentiate and produce better products and services has increased segmentation creating better customer outcomes, but it has drawbacks.
The insurance sector has found ways to build solutions for the end customer but at the cost of the back office, where there is a lot of ‘sticking plaster’ and ‘workarounds’. It might look like the swan gracefully gliding on the pond to the customer, but behind the scenes there is frantic paddling with lots of connectivity, layers and complexity. Multiply this by the various parties involved:
- affinity groups,
- Lloyd’s, and
You soon see how a messy matrix has developed over time where things can go wrong and often do.
These industry ‘workarounds’ are short term solutions hiding the frantically paddling feet of the swan. All the manual processes and extra costs are hidden; multiple checking and re checking; error corrections; dual keying and manual transferring of data by spreadsheet from one party to the next.
Any closer to understanding the opportunity?
So where does this get us in sizing the opportunity? – Is it massive and impossible to quantify? Essentially blockchain can benefit all of the above where more than one party is involved. The world of schemes is just one area and perhaps the most obvious, immediate area for the application of blockchain.
Don’t get me wrong, blockchain will not solve all the issues in the multiple party intermediated insurance sector, but it certainly has a very slick solution for many back office processing problems.
Is the insurance sector ready to be radical?
The opportunity depends on how radical the insurance sector wants to be in terms of change. If we are looking for that Amazon experience for our customers and our interactions across the industry, then there is a solution ready and available. It also creates new opportunities for those seeking first mover advantage to dominate the market space. The current slow and outdated processes are a global issue and blockchain has a global solution. Some have already moved through the learning stage and are moving on by innovating. That’s fine, there is time to catch up!
This technology is available now and insurance business is currently being written. Ask yourself the question – can blockchain help my business? The breakout moment is close.
Blocksure is a UK based company that is currently talking to global and regional insurers and brokers in a number of territories worldwide. Blocksure currently has live products and is in talks with the insurance sector in the following areas:
- Brokers with schemes – removing the need for bordereau
- MGA – multi insurer connectivity – real time and secure data sharing
- Reinsurance – global placements
- Global micro SME
- Life insurance in the Middle East
Reimagine the Process
Blockchain makes it possible to reimagine many of the world’s most fundamental business interactions and opens the door to new ways of working together digitally.
The diagram above shows the impact of blockchain on insurance transactions. Blockchain has demonstrated it can reduce the cost and complexity of operating in the intermediated world of insurance.
Aim for the Moon before Venus
If you are interested in understanding more about blockchain, Blocksure has a team of experienced blockchain specialists and insurance experts who are keen to share their insights and knowledge.
Blocksure may well have an “out of the box” solution that can help with your immediate needs or work with you to develop a bespoke solution.
Aim for the moon first before targeting Venus.
What is your point of view on the blockchain opportunity?