Insurers No Longer On The Sidelines With Blockchain

Blockchain technology is making inroads in the insurance sector. Used to automate and streamline processes for paying claims, blockchain is being embraced by more and more insurance entities looking for streamlined transactions.

‘Many firms in the financial services and insurance industries believe blockchain technology can be adapted for use in traditional transactions in a way that has the potential to redefine transactions and administrative functions,’ said Richard Levin, chair of the FinTech and regulation practice at Nelson Mullins.

‘From banking and payments to insurance, blockchain technology has the potential to make interactions quicker, less-expensive and safer.

A prominent example of the development and use of blockchain technology in the insurance industry is the work of the Blockchain Insurance Industry Initiative (B3i), a group of member companies that came together to test the potential of blockchain for insurance.

Levin said the initial focus of B3i was on property casualty insurance and to see how insurers can use blockchain for catastrophe excess of loss coverage.