The decentralized peer-to-peer payment network has the power to dramatically alter the insurance landscape.
Bitcoin might relegate advisors to a bit part role in the insurance industry, according to a report by Long Finance.
The report found blockchain technology could transform insurance models, shifting from today’s predominantly centralised and spatially anchored paradigm to new models of peer-to-peer and mutual insurance platforms where location becomes relatively less material as a selection criteria.
“Emerging applications, such as smart contracts and decentralized autonomous organizations, might in future also permit blockchains to act as automated agents,” the report’s authors Michael Mainelli and Chiara von Gunten wrote.
“If faith in the technology’s integrity continues to grow, then blockchain technology might largely displace two roles of a trusted third party, i.e. preventing duplicate transactions and providing a verifiable public record of all transactions.”
The blockchain could also provide a global, secure and public record of personal health information.
Bitcoin is known for its unique storage properties. The blockchain is the public ledger that underpins the Bitcoin system.
Once the data is entered, no one can tamper with the record. The idea is that in the insurance sector this extra ledger could store health-related information—potentially dealing a blow to fraud.
But hold up.
The authors are quick to note that Bitcoin is not the only technology that could play a role in altering the insurance landscape.
The blockchain, if it takes off in this realm, might coincide with other game changers, like mobile technology and the Internet of Things. These tools could help insurance companies gather more accurate data to tailor services.
The report found blockchain technology could transform insurance models, shifting from today’s predominantly centralised and spatially anchored paradigm to new models of peer-to-peer and mutual insurance platforms where location becomes relatively less material as a selection criteria.
“Emerging applications, such as smart contracts and decentralized autonomous organizations, might in future also permit blockchains to act as automated agents,” the report’s authors Michael Mainelli and Chiara von Gunten wrote.
“If faith in the technology’s integrity continues to grow, then blockchain technology might largely displace two roles of a trusted third party, i.e. preventing duplicate transactions and providing a verifiable public record of all transactions.”
The blockchain could also provide a global, secure and public record of personal health information.
Bitcoin is known for its unique storage properties. The blockchain is the public ledger that underpins the Bitcoin system.
Once the data is entered, no one can tamper with the record. The idea is that in the insurance sector this extra ledger could store health-related information—potentially dealing a blow to fraud.
But hold up.
The authors are quick to note that Bitcoin is not the only technology that could play a role in altering the insurance landscape.
The blockchain, if it takes off in this realm, might coincide with other game changers, like mobile technology and the Internet of Things. These tools could help insurance companies gather more accurate data to tailor services.
