Something is happening in the insurance industry. Fifteen major insurance companies have joined forces in the B3i-project to explore the potential of the Blockchain technology, a technology that could revolutionize the industry.
One can think of the Blockchain as a chained database whose blocks ensure the authenticity of the previous record. Each block generates a value by the data contained in it, which is taken over in the next block. So no manipulation can be done without changing the whole chain.
This makes the Blockchain a database that allows individuals and businesses to make payments, transactions, and peer-to-peer transactions without the intervention of an intermediary.
A particularly important Blockchain feature are the Smart Contracts. Smart contracts are stored as electronic logs in the Blockchain. Not only can contracts be concluded without lawyers, also the fulfilment of the contracts can be guaranteed in the best possible way.
Smart contracts are already in use
In the US, there are already weddings taking place using Blockchain technology: Both partners do not even have to be in the same place. Instead they scan a QR code. The “contract”, in this case the marriage, is legally recorded by means of a Blockchain database.
The B3i-project was launched in October 2016 and intends to investigate in a first pilot project how the data exchange between insurers and reinsurers can be made even more efficient. The aim is to settle transactions between member companies based on reinsurance contracts using a Blockchain.
Blockchain technology could fundamentally change the insurance industry. Collecting contract-related information improves communication efficiency and speeds up operations. Business processes could be optimized and insurance customers offered an even better service.