Market research consultancy Novarica: Blockchain is a source of disruption and opportunity

Rage Review : Novarica, a Boston-based research and consulting firm, released a blockchain research report last year, but this year's report linked it to the insurance industry. By analyzing the research data of multiple insurance companies, it is concluded that blockchain technology has a great impact on the insurance industry and will definitely change the face of the insurance industry in the near future. In addition, many insurance companies have begun to explore blockchain technology independently or jointly.

Translation: Annie_Xu

A survey report by Novarica, a Boston-based research and consulting firm in the United States, pointed out that blockchain will be a source of disruption and opportunity for insurers.

The Novarica executive briefing predicts that blockchain technology “will significantly impact insurers.”

Novarica said in a press release that a blockchain report was published in 2015, but it did not relate to the insurance industry. A year later, blockchain has become "a household name in the industry."

Jeff Goldberg

Jeff Goldberg, Vice President of Novarica and co-author of the latest report, said:

“While it is too early to say how blockchain will impact insurers’ businesses, it won’t be long before it becomes an important platform for many businesses. The basic function of blockchain is an open distributed ledger system that is secure and reliable. At a more basic level, we are talking about automating the most fundamental value proposition of insurers – trust.”

The briefing outlines the underlying mechanisms of blockchain, existing use cases in the insurance industry, and some start-ups and traditional technology companies that will work with insurers to implement blockchain solutions.

On November 10, insurance strategy consulting company SMA (Strategy Meets Action) reported that the company interviewed some insurance companies and more than half of them understood the impact and potential of blockchain in the insurance industry. Among them, 33% of the companies said that they "have begun to understand blockchain", 20% "know some specific cases, or have started blockchain experiments", 27% "know a little about the concept of blockchain, but do not understand its impact and potential on the insurance industry", and 20% said that they "don't know blockchain at all".

Last month, five insurance and reinsurance companies, Aegon, Allianz, Munich Re, Swiss Re and Zurich, jointly established the blockchain insurance industry alliance B3i, with the aim of "exploring the potential of distributed ledger technology to provide customers with more efficient, convenient and secure services."

The report says:

"Although blockchain applications in the insurance industry are just beginning, their long-term impact will be significant, especially when combined with other emerging technologies such as the Internet of Things. Insurers should pay attention to this disruptive technology."