Could a blockchain platform deliver new markets, more agile products and large-scale cost efficiencies across the industry?
Commentators have identified the insurance industry as an ideal candidate for transformation by blockchain technology. Many blockchain Insurtech pilots are exploring alternatives for processes in the insurance value chain such as know your customer (KYC) and claims. But few have seriously explored the more fundamental potential of blockchain for the insurance industry and considered how it could improve a substantial part of the value chain by removing rework and driving efficiencies, thus transforming the industry, including its operating model and cost structures and thereby opening up new market segments.
Growing digital channels and transforming insurance organizations are hampered by:
1) Complicated products. Clients struggle to understand product features while the ticket sizes and commitment durations are often intimidating. Products increasingly fail to meet client expectations and don’t suit new digital distribution channels.
2) Legacy systems. Monolithic systems obstruct personalization and require long product development cycles. Straight-through processing remains the exception, not the norm.
3) Limited customer service options. Insurers dictate which channels clients use for service while the omni-channel experience remains a dream and far from reality.
4) Limited digital options for customers. Digital support is sporadic across the customer journey.
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