Blockchain: the industry’s next big concern, or a red herring?

Blockchain is one of the few existing so-called insurtech technologies with the potential to completely transform the very nature of insurance – but only if it is embraced by insurers and they use it correctly.

That was one of the key findings of a panel discussion called Blockchain: the industry’s next big concern, or red herring? at the Intelligent InsurTECH Europe conference, which took place in London today (November 16, 2016), under Chatham House rules.

The panel of experts, chaired by Nigel Brook, partner at Clyde & Co, which included a panel of senior executives from Aon Benfield, Mapfre and PwC, agreed that while the potential of Blockchain remains at an early stage, its potential is huge.

The panelists also set out some of its more basic benefits including taking out many of the frictional costs that currently exist in insurance.

But they all also agreed that it has the potential to be revolutionary for the industry.

One panelist said he has learned to never under-estimate just how quickly change can occur – but added that there are many forms of Blockchain and different companies may leverage its benefits in different ways.

They agreed that some sectors will be earlier adopters than others but that all insurers must ensure they understand the potential of this technology and embrace its potential where appropriate as quickly as they can.