A recent report by management consultancy firm McKinsey & Company examines whether blockchain technology will have a positive or negative impact on the insurance industry.
The report, released earlier this month, noted that as many as 20 blockchain startups are focused on some aspect of the insurance market today.
McKinsey breaks down “the most promising insurance-related use cases” into three categories: enabling growth, increasing effectiveness, and reducing cost by automating key processes, all of which the report asserts could have a positive impact for insurance firms.
The report goes on to highlight potential threats, positing that network scalability, security, and a lack of industry standardization remain lingering issues.
The report concludes:
“Blockchain is a technology ready for exploration by insurers. But its exploitation is still a long way off. This is because blockchain is functioning as a distributed system and, thus, its value mostly depends on collaboration with competitors, suppliers, or others.”
The full report can be found below:
Blockchain in Insurance — Opportunity or Threat
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