Aon has launched the latest edition of its “2018 Global Insurance Market Opportunities” studies, discussing blockchain and how the insurance industry can fully utilize it.
The study, entitled “Blockchain: Mechanics and Magic,” was written by risk academic and former Aon Benfield Analytics CEO Stephen Mildenhall. In his piece, Mildenhall highlights some of the “surprising capabilities” of blockchain in the insurance industry and tackles common misunderstandings and inaccuracies surrounding the technology.
Mildenhall argues in his paper that while blockchain has been pushed as a solution to the insurance industry’s processing and back-office inefficiencies, many are missing the technology’s true potential – the redemocratization of data. According to him, blockchain provides insurers with access to data where and when required. It also allows individuals to reassert control over their private data.
Insurers are well-positioned to offer the infrastructure and alternative revenue model that will replace “outmoded and insecure centralized networks” with distributed blockchain solutions, Mildenhall maintained. The study says that this “revolutionary model” represents the true potential of the blockchain for the insurance industry.
The study also notes that blockchain (in operating as a database for insurers) has three potential areas of concern for users: data integrity, data validity, and data security. Mildenhall points out that blockchain offers “innovative solutions” in all three areas.
“Blockchain: Mechanics and Magic” is the first in a series; the next article, “Demystifying Artificial Intelligence,” will be available in early August.