Just because 67% of insurers are considering blockchain is not a good reason to invest time and money. You have to be able to explain why blockchain is important to your:-
- Ability to solve compelling problems
For example. the typical uses of blockchain will be for :-
That might be to achieve transparency of sourcing, contents and shipments which is why the MEARSK & IBM blockchain initiative is interesting.
Who gains from such transparency amongst :-
- Regulatory/compliance bodies?
AND what's the value you capture that will make such a significant difference? Why will you be able to do this better than your competitors? And why with blockchain?
If you have compelling answers you may be onto a compelling use and strategy for blockchain but if not you are almost certainly only going to add cost, delay and disappointment for everyone.
Insurers focussed on digital claims will find a single digital record far more effective to orchestrate activities across customers, employees, suppliers & contractors. But keep an eye on the longer term.
A digital claims platform that delivers digital transformation across the claims value chain today and allows longer term deployment of AI and blockchain is vital.
It must also cater for evolving ecosystems to exploit the potential of blockchain which, by definition, is only of value if there is widespread adoption and incentives to join. Ecosystems are just such an opportunity for blockchain but what does the insurer contribute to the partners in these groupings .
For now make sure you know which of your capabilities can be exploited by adopting blockchain. And be sure that your competitors cannot replicate these. And read the complete article from MIT Sloan Management Review.
Unfortunately, there’s no easy answer for how any particular company should utilize or implement blockchain — if there were, everyone would be doing it. So, where should managers begin? In our view, companies can go a long way toward developing the right approach to blockchain by carefully considering three aspects of uniqueness: their strategy, the capabilities they bring, and the problems they can solve for stakeholders. These three aspects are mutually reinforcing, and it’s in the interactions between them that companies can create significant value above and beyond what competitors might be doing.