Deloitte has said that blockchain will drastically change the business model of the insurance industry.
Already being used in other applications including digital banking, trade finance and cross border payments, blockchain will dramatically change the insurance sector as the technology can reduce the uncertainty of insurers’ risk pool system.
Deloitte has been working with the Hong Kong Monetary Authority (HKMA) to adopt the technology for the bancassurance sector and is set to launch the HKMA-backed project in the fourth quarter of 2017.
In Asia, one of the main uses for blockchain will be to synchronise product and customer information between banks and insurance companies, according to Paul Sin, the fintech partner leading the Asia Pacific blockchain lab at Deloitte.
Sin said other likely uses of blockchain are tracking goods that are covered by insurance companies and detecting duplicated claims.
Global consulting leader for Deloitte financial services, Joe Guastella, said blockchain usage is currently more about improving the process than addressing actual risks.