Blockchain is making global insurance more efficient

Subject

Blockchain is transforming the insurance sector.

Significance

Insurers are turning to disruptive new technologies to facilitate the management of risks within their organisation and across the industry. Blockchain technology can cut through the complexity surrounding asymmetric information that has hindered the sector.

Impacts

• In November 2016, the Financial Stability Board said it is assessing the likely impacts of blockchain technology on financial stability.
• In partnership with a private firm, the Bank of England has built a model with smart contracts to test different applications of blockchain.
• A Deloitte survey of 300 US firms found that 10% had invested 10 million dollars or more in blockchain, though 39% knew little about it.