The insurance is one of the biggest industries in the world. It faces many challenges today:
• growing regulatory burden forces the companies to invest in transparency and produce more reports;
• to grow, companies need to go to the new niches and new markets.
• growing digital expectations: consumers want the services to be available through digital channels such as the Internet, mobile or social networks.
There is a problem which makes it very difficult for the big insurance companies to meet above-mentioned challenges.
Historically, the growth had been driven by the acquisitions during which the systems were not properly integrated. One of the biggest UK ICs which offers 10 insurance products automates its business processes with 130 different IT systems and thousands of spreadsheets. The integration between systems is rudimentary. ICs don’t even have the concept of a customer; they only have ‘policyholder’. This makes lots of things impossible: customer relationship management, cross-sale or up-sale. Many processes like policy management, claims processing etc. require the third-parties. Constructing new type of policy is extremely difficult with time to market for new service often being very long.
The industry obviously needs a transformation. There are many possible options for this transformation. One of those is definitely blockchain technology. Many industry analysts and consultants
mention blockchain in general and smart contracts in particular as the compelling use case for the industry.
Blockwise is building the software platform which allows programming any insurance product as a smart contract in blockchain network. (Re)Insurance companies, aggregators, and other stakeholders can join the network to streamline the business processes and the data flows. Having every insurance policy processed by the smart contract means that claims and payouts are fully automated, policy administration is simplified and client-orientated and all the data is securely stored in an irrefutable way for further analysis whether it is fraud prevention or compliance reporting. The distributed nature of the system removes single points of failure.