Friday, September 22, 2017

Blockchain to change insurance business model

Professional services giant Deloitte said blockchain will drastically change the business model of the insurance industry.

Already being used in other applications such as digital banking, trade finance and cross border payments, among others, blockchain will significantly change the insurance sector because the technology can reduce the uncertainty of insurers’ risk pool system.

Deloitte has been working with the Hong Kong Monetary Authority (HKMA) to adopt the technology for the bancassurance sector and is set to launch the HKMA-backed project as soon as in the fourth quarter of 2017.

One of the main uses for blockchain in Asia will be to synchronise product and customer information between banks and insurance companies, according to Paul Sin, the fintech partner leading the Asia Pacific blockchain lab at Deloitte.

Other likely uses are tracking goods that are covered by insurance companies and detecting duplicated claims, he said.

Joe Guastella, Deloitte Global consulting leader for financial services, said blockchain usage is currently more about improving the process than addressing actual risks.

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