Phased integration of DLT systems to speed insurers’ adoption in 2019
There can be few issues more designed to give insurance executives a headache than a discussion of the integration of new and old IT systems and how painful the transition between the two can be.
Too often, the experience of IT innovation has been the challenge of making it work with existing systems. This issue has made adoption and delivery of benefits slow because of extended or partial roll outs and with an innevitable consequential effect on costs.
Already, the insurance industry, has been collaborating and experimenting on developing leading business solutions on DLT platforms like Corda. This has demonstrated DLT’s ability to deliver marketwide change and that it is not just another quick IT remedy that solves part of the problem but stores up others for the future.
ChainThat has been addressing the integration challenge in engineering our DLT solutions. We will shorten that roll out period by providing a phased and incremental approach to integration for adopters. This will be an essential enabler for implementing DLT solutions across a business network of different organisations.
Our analysis suggests that rather than years of change and transformation, DLT, when effectively planned and managed, is speedy and straightforward to implement. It offers an answer to the conundrum that insurers face of large scale process and IT legacy systems, the need for high quality and reliable data and the pressing need to reduce its cost base.
A commitment to the adoption of strategies that allow DLT participants to shift in smart, incremental steps from their existing ways of communication with trading counterparties (e.g. email and documents, electronic messages or central systems) to the distributed coordination model powered by DLT, is undoubtedly the way forward.
Phased integration allows a tailored approach:
By providing clients with this staged transition with routing logic and a variety of integration methods and points to participants current systems we are lowering the barrier for adoption for insurance companies so that they can realise the promise of innovation.
And the lowering of those barriers has never been more urgent, as 2019 is likely to be the year when we move from everyone talking about a DLT revolution to making it happen.
Perhaps the prospect of technological revolution is enticing but for the insurance industry, with a background of successive over promised and under delivered solutions, scepticism is not unreasonable. However, blockchain integration is moving fast and in our end of year blog we’ll address what 2019 will hold for take up by the insurance industry and what steps we need to take.