Blockchain technology taking off

Blockchain technology is expected to change the business landscape, but its impact the insurance industry might be more difficult to predict, according to Accenture.

A blockchain is a public account of all Bitcoin transactions ever executed. It is constantly evolving as more transactions are added.

However, while it is already gaining traction in both retail and banking, the insurance industry is still discovering how it can best be used.

Abizer Rangwala, managing director, Accenture Insurance IT Strategy, wrote in a blog, ‘I’m aligned with those who see the use of blockchain as continuing to gain momentum and expect it will have a profound effect on business. This is starting to happen now, especially in retail and in banking.

‘The effect of blockchain for insurance products is not as clear-cut and will likely take longer to emerge than for banking.

‘The speed and ease with which contracts could be changed and the time-stamping feature of blockchain could, for example, facilitate individualised contracts that reflect actual risk, such as on-demand auto insurance effective only during hours a car is being driven.’

Read the full blog here.