The digitization technology could be of strategic interest to insurers. Yet before starting down the long road of implementation, individual companies and the industry need to investigate use cases, establish collaborations and better understand the technology’s conditions and limitations.
Blockchain-based technology offers potential use cases for insurers according to a recent report by McKinsey. The report, titled “Insurance and the Future of Money,” states that blockchain is being used in various industries including insurance, banking, financial services, and fintech, among others. While the technology is ready for exploration by insurers, the report suggests exploitation remains a long way off as to derive value, the distributed system depends on collaboration with competitors, suppliers, or others.