On the positive side, it was also encouraging to see that the London Insurance Market is, in some key areas, holding its own against some of the other global hubs and particularly in specialty and commercial insurance in the established insurance markets. However, it’s also clear that many of the challenges and trends articulated in the first report are still very much there.
This article explores why Blockchain, a technology barely eight years old, is set to have a profound impact on the reinsurance market. The application of this technology will both change the way reinsurance markets conduct business and the financial dynamics of that business. This disruption is approaching very quickly; we will start to see its impact in 2018 and can expect significant change within five years.
Commercial & Specialty (Re)Insurance is a very important aspect of the global economy and yet, historically, has been very slow in embracing change. Emerging technology such as Blockchain promises a step change improvement in operational efficiency and is primed and ready for the reinsurance markets. In this article, I discuss if blockchain technology in commercial insurance is ready to cross the chasm.
Is blockchain ready to replace the quill pen in the reinsurance markets? ChainThat feature in the latest edition of the Digital Insurer's InsurTech Insights on reinsurance.
With the advent of decentralised, distributed ledger storage and smart contracts using Blockchain, it gives an immense opportunity for players in the Global Insurance Markets such as the London Insurance Market to set up their consortia (semi-private) permissioned decentralised networks. This allows the relevant trading partners to do peer to peer transactions along with having a common distributed ledger or record of these transactions.