Industry Issues | ERM & Emerging Risks

Emerging Risk: Blockchain

Blockchain

A.M. BestTV has released a series of video episodes that highlights the future of blockchain technology and how it may better enable automation, customization and confidence in insurance transactions and operations. At its core, blockchain technology is a shared, immutable ledger for recording the history of transactions, and in the insurance ecosystem, holds the potential to greatly diminish or even eliminate redundancy, particularly around record keeping.

  • How Blockchain Will Link a New Insurance Value Chain: A look at how blockchain technology can streamline the customer experience and claims processes, as well as the data requirements and framework designs, such as a public versus a private blockchain, insurers need to consider before adopting the application: http://www.ambest.com/v.asp?v=blockchain1318 .
  • Blockchain Works When Everyone Works Together: Due to the transparent nature of blockchain technology, its effectiveness requires collaboration, even on the part of competing companies. How insurers can build successful blockchain consortia is a key step going forward: http://www.ambest.com/v.asp?v=blockchain2318 .
  • How Blockchain Is Set to Transform Insurance: While the impact of blockchain technology is being felt today, it is still very much in its infancy. Harnessing the value of this technology could give peer-to-peer or usage-based insurance platforms a significant boost: http://www.ambest.com/v.asp?v=blockchain3318 

Marsh Develops Commercial Blockchain Solution for Proof of Insurance

Marsh, IBM, ACORD, and ISN will collaborate on the development of a commercial blockchain solution for proof of insurance. Marsh says the certificate of insurance process will be transformed "from complicated and manual to streamlined and transparent, allowing clients to speed up necessary business functions such as hiring contractors and transferring risk while increasing coverage certainty." Built on the open source Hyperledger Fabric technology and IBM Blockchain Platform, Marsh is developing the commercial proof of insurance solution in conjunction with IBM, with input from ACORD and customer feedback from ISN. Currently being tested, Marsh's new blockchain network is expected to go into production later this year. Dallas, Texas-based ISN, a global specialist in contractor and supplier information management, is the first Marsh client to pilot the solution. "Marsh sees great opportunity in leveraging blockchain technology to better serve our clients by maximizing efficiency and creating new opportunities in the insurance value chain," said Sastry Durvasula, chief digital officer and chief data & analytics officer at Marsh. "We believe strategic engagements such as this one with IBM, ACORD, and ISN will help accelerate the adoption of further blockchain applications benefiting our clients across industries."