We’ve all heard that blockchain is the next big thing, and that goes for insurtech as well.
Computer Solutions & Software International LLC, a Florida-based insurance software firm, has commissioned a report intended to clarify how this technology will impact the insurtech sector. For clarification, blockchain is a strategy for sharing an encrypted ledger on the internet.
The authors surveyed insurers and venture capitalists to see if anyone in the insurance industry is actually using blockchain now, and if they are how they are using it. The authors published three key findings.
- Blockchain terms can be expressed in plain English. They included a glossary with their report that helpfully defines terms such as “smart contract” and “immutable ledger.” The latter, for example, is defined as a “history of transactions that cannot be altered in any way. This is a key characteristic of blockchain ledgers.”
- Few insurers or insurtech vc firms are involved in blockchain. Indeed, only 16% of insurance venture capital firms have significant investments in blockchain. A number of large insurance companies are dipping a toe in the water though, by supporting the B3i and RiskBlock Alliance consortiums. B3i is focused on property and casualty insurance, while RiskBlock has joined forces with LIMRA to introduce an app that allows life insurers to monitor the Social Security Administration’s Death Master File.
- Blockchain could be a boon for life and health insurers with activities using paper or digital ledgers. Health insurers, health care providers and patients all collect and share records while life and annuity issuers need to track whether their customers are alive or dead. Blockchain can make it easier to securely share records. Because blockchain ledgers are encrypted, they meet Health Insurance Portability and Accountability Act (HIPAA) data security requirements.
For more information, please read:
3 Things to Know About Blockchain Insurtech, in Actual English | ThinkAdvisor