A ‘revolutionary model’ that replaces outmoded and insecure centralised networks is the true potential of blockchain technology in the insurance industry, according to a study by Aon.
The first article of Aon’s 2018 Global Insurance Market Opportunities series, ‘Blockchain: Mechanics and Magic’, emphasises some of the ‘surprising capabilities’ of blockchain within the insurance industry and addresses common misunderstandings and inaccuracies.
The article’s author, former Aon Benfield Analytics CEO Stephen Mildenhall, argues that commentators who suggest blockchain is a solution to the insurance industry’s processing and back-office inefficiencies are missing its true potential.
According to Mildenhall blockchain allows for the re-democratisation of data–providing access to data where and, when required, for the reassertion of the individual’s control over their private data.
Because of this, insurers are well-positioned to provide a revolutionary infrastructure and alternative revenue model to replace outmoded and insecure centralised networks with distributed blockchain solutions.
Mildenhall suggests this ‘revolutionary model’ is the true potential of blockchain technology in the insurance industry.
Additionally, the article highlights that blockchain offers innovative solutions to the three concerns held by database users—data integrity, data validity, and data security.
