Blockchain’s impact on the Insurance industry is at a stage where the possibilities of drastic reduction of inefficiencies and improve the expense ratios are budding at the doorstep. While at this stage, Blockchain can be seen as a massive overhaul of the insurance industry, but basing on the early use cases of consortiums, the impact of Blockchain will be heavily felt on the support side of the insurance industry.
In the near future, the merger of insurance and technology dedicated on insurance will dictate the utilized structure of a Blockchain that supports the insurance operations of an organization. This will enable insurance companies to migrate from the ageing third party platforms where their dependency currently lies, as insurance-tech aka insurtech will uproot the said platform, in favor of a Blockchain infrastructure built primarily or heavily modified for the organization. Blockchain for insurance companies will encompass operations, allow managed services, apply data sciences and allow collaboration with other parties that operate on Blockchain.
Diversification and Niche Driven
Blockchain, in its entirety of enabling cost-efficiency and seamless deep knowledge harvest of data, will allow the insurance industry to flesh out their branding while routinely augmenting their care response when it comes to contract enactment for clients. These will include the following scenarios:
- Optimization of Processing Scenarios – Drastically reduce the stoppage times and disruption on waiting for process actors, to facilitate a better insurance processing system.
- Faster Care Coverage – With the realization of nimble clauses based on smart contracts that self-activate when the need for coverage applies, insurers will be able to deliver benefits to its benefactors in record times.
- Genesis Tech – Blockchain is principally an information system that is capable of self-governance when it comes to transactions enabling. By this definition, Blockchain technology can accommodate other groundbreaking technologies such as Analytics, Artificial Intelligence, Cryptocurrency and the Internet of Things (IoT). For insurers, insurtech basing on these technologies can dramatically alter their coverage expansion where partnerships with Fintech can give way to carewears such as IoT enabled medical devices that correlate insurance coverage that facilitates data on Blockchain.
Open Ended Collaboration for Insurers
The success of a Blockchain consortium is based on the strength and depth of the collaboration to drive dividends on a wide net of use cases. This is true when it comes to insurers as their classic by definition is based on key-tie ups with recognized medical providers and hospitals.
The landscape of a Blockchain enabled Insurtech ecosystem will encompass several entities with recognizable roles. In the abstract of a collaborative ecosystem, there will be partners, professional services firms, tech partners and other medical providers to define an insurance network.
In managing collaboration, Blockchain presents an essential platform to facilitate data and information processing. Combine this with unbeatable optimization of process times, you open a future of a much improved delivery of coverage for insurance beneficiaries.
Scalability for Sustainability
With the current and previous insurtech platforms such as ERP and financial systems, scalability has been a huge contributing factor in gauging a platform’s dependability. As partnerships are formed that transforms policies and as the number of insured clients climbs, the insurance provider’s workload of research, processing and delivery of coverage grows exponentially in terms of the resources required. This is a huge case with large insurance companies that have multiple policy systems, multiple claims systems and expanded knowledge resource base, the streamline of information harnessing becomes a big spaghetti landscape.
Curiously, the use case of Blockchain was born from the complex research and information needed to deliver insurance coverage. As insurers all bank on their market uniqueness, a Blockchain that fits all is non-existent.
Instead, Blockchain for insurtech is designed, built and optimized for scenarios where the present platform is found lacking or where the process flounders the most. This is disruption acting as a turnkey experience in delivering Blockchain’s promise of reducing process friction, reducing back-office costs, turn friction into opportunities. This includes streamlining the information harness process, applying definition for products with tighter rules and boundaries, allow for simpler reinsurance placement and managing exposures.
DynaQuest has a wealth of experience in delivering managed IT and Outsourcing solutions to insurers through process & service delivery management. With the arrival of Blockchain, DynaQuest has begun working with insurers and finance companies to utilize Blockchain through knowledge research, engineering, migration and continuous support.
DynaQuest Technology Services Inc.
19/F Uptown Place Tower 2 11th Drive
Uptown Bonifacio 1630 Taguig City
+63 2 2241862
+63 2 403 1495