The innovative distributed ledger technology known as blockchain is often associated with banking and the financial markets industry. Indeed, blockchain’s strengths in data integrity and security, recordkeeping and efficiency have the potential to help restore trust in an industry still recovering from the global economic crisis of 2007-2008. But blockchain’s benefits aren’t limited to any single industry. Insurance is another industry that grapples with trust issues, and it is following close behind banking in evaluation and adoption of blockchain technologies.
Blockchain holds the potential to improve trust and transparency in several ways. Trust is required in relationships among customers, insurers and service providers in the auto claims process. It’s also necessary for verifying the authenticity of shared transaction data, such as repair estimates or exchange rates that are applied in cross-border premium or claim payments. Around the world, insurers are studying, experimenting with and deploying proofs-of-concept with blockchain. It’s not too late to engage, and now is the time to get started.