McKinsey reports on blockchain’s impact on insurance companies

A recent report by management consulting firm McKinsey & Company examined whether blockchain technology will have a positive or negative impact on the insurance industry.

The report states that as many as 20 blockchain startups are eyeing some aspect of the insurance market.

McKinsey breaks down the “most promising insurance-related use cases” into three categories: enabling growth, improving efficiency, and reducing costs by automating key processes, all of which the report claims can have a positive impact on insurers.

The report goes on to highlight potential threats and argues that network scalability, security, and a lack of industry standards remain issues.

The report concluded:

“Blockchain is a technology that insurers are ready to explore, but it still has a long road to development. This is because blockchain is a distributed system, so its value depends primarily on collaboration with competitors, suppliers or others.”