London strategic data and transformation consultancy provides insight into Blockchain development, application and opportunity
LMMC Partners, the strategic data and transformation consultancy for the London Insurance Market, today announced the results of the collaborative presentation with The International Underwriting Association (IUA).
Blockchain is becoming a pervasive topic of discussion within the insurance market, within innovation hubs and on the C-suite agenda. However, it is still early days in terms of testing and acceptance – and in many cases discussions are immature.
Participants attending the collaborative discussion, “How to respond to the Blockchain opportunity –
A Business Perspective” were able to share experiences and debate applications of blockchain technologies within the London and global insurance market. Participants from across the insurance market, from operations, claims, technology, underwriting, compliance and risk management, and developers swapped ideas at the America Square Conference Centre, London.
Early stage blockchain applications for financial services have been operational around 5 years, with over 1000 blockchain start-ups and upward of $1bn money flowing-in to Blockchain applications in 2016. The core drivers of the move to blockchain are the possibilities to substantially reduce frictional cost, to increase the speed of processes, to provide transparency to market participants and to transform client experience with next generation technology framework.
Key concepts and potential business applications – from identity, sanctions screening, KYC, policy contract lifecycle management, usage based insurance, and claims to settlements – amongst others were debated with reference to pain points currently experienced within the industry. Over 60% of participants saw the ability to meet compliance (including sanctions) requirements as a key challenge with their current processes and infrastructure.
Phil Foley, co-founder and partner at LMMC, explained “Within the insurance market blockchain is in its infancy, but as with many interlocking financial and legal applications, looks likely to transform the way that identity, trust, transactions and customer assets are managed by professional services firms.”
Over 80% of the participants saw blockchain technology as being a game-changer for the industry. Host Rajen Madan, co-founder and partner at LMMC, explained “The promise of blockchain technology to re-imagine market flows is clearly seductive, however, firms should explore pilot applications against business outcomes. The development of the firm’s data assets and future operating models should go hand-in-hand and is a necessary precursor to success.”