While commentators often tout blockchain as a solution to the insurance industry’s processing and back-office inefficiencies, they are missing its true potential: blockchain technology allows for the re-democratisation of data – providing access to data where and when required – and for the reassertion of the individual’s control over their private data.
In this regard, insurers are well-positioned to provide the infrastructure and alternative revenue model that will replace “outmoded and insecure centralised networks” with distributed blockchain solutions.
Aon has launched the first article in its 2018 Global Insurance Market Opportunities series, “Blockchain Mechanics and Magic”. Written by risk academic and former CEO of Aon Benfield Analytics Stephen Mildenhall, it highlights some of the “surprising capabilities” of blockchain within the insurance industry and addresses common misunderstandings and inaccuracies.
According to the study, the “revolutionary model” represents the true potential of the blockchain for the insurance industry.
It also highlights that, in operating as a database, a blockchain has three potential areas of concern for users: data integrity, data validity, and data security.