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Using blockchain to get ahead of the game

Creating trust and driving operational excellence as a digital broker

Overview



The rise of blockchain promises to bring disruption to commercial insurance by fundamentally reshaping principles and processes that have governed the industry since the 17th century. Blockchain offers a more efficient alternative to the processes the insurance industry developed as an answer to the absence of mutual trust between affected parties and a lack of end-to-end transaction transparency. Blockchain is a secure transaction-ledger database built on contemporary cryptographic tools, creating a secure yet open means of conducting business transactions. When combined with smart contracts, the result is a solution which can securely compute and record transactions in a distributed ledger, allowing automatic verification and collective agreement between parties. The fundamentals of blockchain are trust, transparency and immutability, together with automation enabled by smart contracts. These create a unique foundation for building digital ecosystems utilizing emerging technologies such as the Internet of Things (IoT), new productivity platforms, application programming interfaces (APIs), smart advisors and advanced analytics. As such, brokers must assess the use of blockchain technology as a foundation to embrace the next big thing – and get ahead of the game.

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"Among numerous other technologies, blockchain, the enabler of mutually distributed ledgers, could be a game changer for brokers."