The movers in Blockchain in the insurance industry are the titans that are operating in a global scale. While the responders and early adopters also comprise of the subsidiaries and partners of these insurance giants that are the first to experience Blockchain’s transformative effect. In the track record of technology, it is the small and medium scale organizations that are often in the ‘wait and see’ stage apprehension when it comes to technology. Adopting new technology has its fair share of risks and costs. This is why some smaller players are still waiting for technology platforms to mature before they make a significant step in adopting to these platforms.
While the smaller and medium sized players in the insurance industry are projected to catch up later on with Blockchain, the rate of their adoption has a significant effect on the landscape of Blockchain when it comes to insurance and the future of the industry itself. Blockchain on insurance states a much-improved information and business process efficiency, better security when it comes to confidential information and allow automation to modernize the industry’s dependence on manual and actor dependent process verification.
In order to grasp Blockchain’s transformative platform in the practice of insurance, the fundamental understanding of the technology’s capabilities, features and verified use cases are necessary for decision makers and their department. The adoption of Blockchain entails transformation of the business and its processes as the platform is not a fad but is a relevant platform of enterprise technology for many years to come.
With understanding comes the driving force of reshaping business and policies in order to achieve competitiveness of the insurance practice. In the near future, business competitivity will increase as the pioneers of Blockchain will be fully-equipped with its platform. It will lead to optimized processes and lowered cost for each insurance process completed.
While the small to medium scale players are projected to be the large third wave set of adopters in Blockchain by 2020 and beyond, the Blockchain maturity is considered phase one of the technology’s journey.
In the industry, information is often siloed where the means to process, store and harness information is an ageing and bloated practice that has its invisible costs that is costing insurance companies hundreds of thousands of dollars.
While many insurance companies often employ third party vendors to handle security, information storage, process and analyze data, the extensible process that features various collaborators working simultaneously in a value-chain, it has it shares of risks and challenges when it comes to scaling up with the volume of requests.
With Blockchain’s decentralization platform, it allows various collaborators to effectively work simultaneously while being non-custodians of the information being processed. The information is encapsulated with a chronological algorithm protection while enabling read / write and concatenate processes for collaborators. By enacting governance protocols and algorithm mechanisms to protect the integrity and privacy of information, Blockchain is culling the risk associated with multiple-collaborators working on sensitive information.
DynaQuest Technology Services is an enabler of Blockchain for insurance companies with turnkey solutions such as business case, consultation, resource procurement and operations management.