My earlier posts in this series explored how blockchain could enable P&C insurers to increase efficiencies, transform their value chains and even potentially create new business models. However, blockchain and related technologies such as smart contracts remain immature and untested in the P&C market.

So where to begin? We believe P&C insurers can get started with a phased approach that enables them to understand its disruptive impact and potential use cases before rolling out proofs of concept and pilots, then industrializing their blockchain capabilities. We recommend a six-stage approach to exploring and validating a blockchain business case:

  • Discovery: Begin by examining the current state of your business processes and functions that could be streamlined using blockchain. Examine what competitors and other industries are doing with blockchain and evaluate the potential of blockchain to address pain points in the business.

  • Design and plan: Describe a vision and a value case for your business processes where you could see blockchain having a transformative effect. Assess the technology and business framework you need to achieve your vision, and assess the gaps in your skills and infrastructure.

  • Proof of concept: Identify a business case to prioritize for a proof of concept. Design and create a prototype for the selected use case to get hands-on experience of a blockchain technology and train up resources. Focus on learning about operational priorities, business case drivers, security and compliance.

  • Pilot: Increase the scope of your proofs of concept to include assessment of integration points and internal systems, IT operations, second level compliance and security requirements. Assess what you have learnt at a high level and draw a roadmap for wider implementation.

  • Scale up: Commence with end-to-end implementation of your proposed solution, integrate it with internal systems and make it available for all channels and customers. Also, talk to ecosystem partners about how you believe they could get on board your blockchain initiative.  

  • Expand and manage: Clarify the roles and responsibilities of the key stakeholders in the business and transition your blockchain activities to centers of scale and skill. Expand your platform to additional use cases.

Though we are still in the early phases of blockchain adoption, P&C insurers must start assessing where it might fit into their value chains and ecosystems. Those that get started now will have an opportunity to get ahead of the game.

Submit a Comment

Your email address will not be published. Required fields are marked *