Blockchain technology carries enormous potential to change the property/casualty insurance industry, and companies should be exploring its potential uses, the National Association of Mutual Insurance Companies said in an analysis released today.
“Most people know blockchain as the technology behind Bitcoin and other cryptocurrencies, but blockchain systems have the potential to fundamentally change insurance data processing, claims, and underwriting,” said Charles Chamness, president and CEO of NAMIC. “The infrastructure and computing systems needed for blockchain systems are rapidly developing, and the legislative and regulatory systems are trying to keep pace.”
In “Blockchain: What Possibilities Lay Ahead for Property/Casualty Insurers,” Jonathan Rodgers, NAMIC’s financial regulation manager, explores the potential uses, and pitfalls, of blockchain technology for the property/casualty insurance industry. Rodgers examines several aspects of the insurance business in which blockchain could provide more security and efficiency, as well as the challenges or regulatory burdens that could derail acceptance of blockchain technology.
“Any new technology will thrive or die on its ability to improve on what exists today,” Chamness said. “Though still in its early stages, blockchain has the potential to be an extremely useful tool for property/casualty insurance and the entire financial services arena.”