How can blockchain help carriers innovate?,
If the world is going to open up into extended ecosystems—and it will—then companies from different ecosystems need to come together to provide products and services. In order to transact they will need a means to reliably exchange information. That’s exactly where blockchain can make a difference, because what it doesn’t require is two people working off the same core system. In that respect, it’s like connective tissue between players in an ecosystem—players that don’t have to share the same onerous administration systems or massive pieces of architecture. It allows collaboration in a much easier format and, importantly, it offers a high level of security.
And there’s also trust. With blockchain, trust can be delegated to the ledger, enabling insurers to collaborate more freely. In combination with this delegation of trust, insurers can create microservices—typically in the form of APIs—to enable digital partnerships at scale. In the longer term, blockchain will be the glue within powerful ecosystems that offer radically new, customer-centric business models and products.
It could, for example, enable P&C insurers to build more sophisticated usage-based insurance models in partnerships with auto manufacturers or makers of smart home devices. Other emerging customer-centric business models and products include:
- Peer-to-peer Insurance
- Smart adjusting policies
- Smart-device insurance add-on
Further reading on how blockchain may change the insurance industry:
Insurers need scale, and these technologies can help them achieve it
Insurers are unblocking the blockchain and preparing for the future
CB Insights: How blockchain could disrupt insurance, Insurance Blockchain Guide, Insurance Guide