The benefits of blockchain for captive insurers
From: Captive International, May 8, 2018
The insurtech revolution has worked its way into the captive insurance sector, but as with any emerging technology, every opportunity is not without some challenge, as Gavin Woods, counsel, and Josephine Noddings, associate, at Appleby’s Bermuda office explain.
There is no getting away from it: the insurtech revolution has arrived and, with insurers spending more time and increased resources to create and trial prototype technology, it looks as though the development and use of financial technology in the insurance sector is here to stay.
One of the main reasons for the insurance industry’s focus on insurtech is the development and viability of technology that, it is hoped, will facilitate increased efficiencies in the insurance process—specifically, distributed ledger technology: blockchain.
Blockchain is perhaps most famously known as the technology that enables the trading of bitcoin, but the software has innumerable applications that go beyond cryptocurrencies. At its core, blockchain is a ledger that records and verifies data, enabling consensus-based mechanisms to ensure the validity of each part of any given transaction without the need for intermediaries.