Volume 12, Number 17, October 2022

Blockchain in Insurance Industry: Turning Threat into Innovative Opportunities

  Authors

Wadnerson Boileau, USA

  Abstract

Insurance has been around for more than centuries. This risk mitigation strategy has been utilized in maritime commerce as early thousand years ago, where Asian merchant seafarers were pooling together their wares in collective funds to pay for damages of individual’s capsized ship. In 2018, insurance industry made up 6% of global GDP while financial industry amounted to about 7-9% of the US GDP. In 2020, the industry net premiums written totaled $1.28 trillion, created 2.9 million jobs, and recorded $2.0 trillion investments. Despite of growing reform, the insurance market is dominated by intermediaries assisting people to match their insurance needs. While many predictions focused on artificial intelligence, cloud computing, blockchain stands out as the most disruptive technology that can change the driving forces underlying the global economy. We will focus on presenting blockchain use cases in insurance, demonstrating how the sector can turn blockchain threat into innovative opportunities.

  Keywords

Blockchain, insurance, risk management, innovation.