Blockchain 'moves beyond the hype' towards real-world solutions

Hailed as one of the few insurtech technologies with the potential to transform the centuries-old re/insurance industry, blockchain is finally moving from 'hype' to reality as companies are becoming increasingly focused on investment returns and solutions with real-world use.

As a senior leader at the industry-led consortium, Christopher McDaniel, president of the Institutes RiskStream Collaborative, believes that the re/insurance industry is changing at a faster pace than ever before, rapidly developing and testing new technologies - although adoption is still slowed by bureaucratic barriers.

"The days of proof of concepts are over, today is about production solutions and verifiable efficiency gains," he tells Intelligent Insurer. "The last couple of years it was all about the hype. This year it’s about real-world solutions and return on investments."

McDaniel, however, adds that even though innovation is occurring at a galloping pace, with cedants, brokers and carriers constantly engaged in designing, building and testing new solutions, the production and adoption part still remains a significant challenge for many. "You hit the old school wall when you get to final production testing and sign-off. We have spent several multiples of time trying to push for production and adoption this year, than we have on the actual build of our solutions."