A recent report by the Insurance Practice of McKinsey&Company analyzes the potential of Blockchain technology in the insurance industry. The authors, Johannes-Tobias Lorenz, Björn Münstermann, Matt Higginson, Peter Braad Olesen, Nina Bohlken and Valentino Ricciardi, see a number of potential use-cases for Blockchain.
While the insurance industry (in terms of technology adoption) lags behind banking, it is nevertheless uniquely positioned to benefit from blockchain technology. Blockchain can address the competitive challenges many incumbents face, including poor customer engagement, limited growth in mature markets, and the trends of digitization.
Many leading insurance companies have started to look at Blockchain technology, but according to McKinsey this might be rather a long shot.
Implementation of blockchain has a long-term horizon as it depends on network effects as well as on defining the regulatory conditions. Also, before initial implementation steps are taken, the benefits and limitations of the technology need to be fully understood.
Considering all of this, now is the best time for the insurance sector as a whole and for individual insurance players to further investigate the blockchain technology and its potential.
The report is available at http://www.mckinsey.com. Download PDF