Chain-Finance recently held an event at Rainmaking Loft, with 12 speakers providing a range of perspectives about the potential for Blockchain in Insurance. The audience was a cross section of technologists, startups, students, investors and consultants.....and about four people from the Insurance sector. That drew a comment from one of the presenters who asked why there were so few insurers present to hear about something that will disrupt the industry.
A major benefit of Distributed Ledger (Blockhain) Technology is the disintermediation effect that It provides and how this removes the need for trusted third parties. The majority of the presenters alluded to how this works in the B2C market where it fits well with Peer to Peer and Crowdfunding. Several suggested that insurance contracts were good candidates for transitioning to Smart Contracts, with one suggesting that a contract is effectively a series of IF...THEN...ELSE statements. The brief session on how the commercial insurance market works tempered that thought somewhat with a picture of Brokers carrying thick bundles of paperwork and the question posed to the audience of "Does that look like something easily converted to an IF...THEN statement?. Blockchain WILL disrupt insurance in several ways. The obvious ones are in cost-efficiency gains (if only by removing much of the duplication of effort and time spent reconciling between parties), and in providing disintermediation and "removing the middle man". That poses an interesting question in the B2B World....who is the "middle man"?