Rather than simply selling insurance, insurance brokers are now risk advisors, counseling their wholesale clients throughout the lifecycle from purchase through claims settlement and beyond. But the evolution from seller to risk manager hasn’t been easy for most brokers, especially when it comes to large and complex deals that involve multiple brokers, carriers and geographies. These complex deals are often still managed on Microsoft SharePoint servers and Excel spreadsheets, and information must be sent to numerous parties involved.
These outdated processes result in higher operational costs and slow each step in the insurance lifecycle. More importantly, operational inefficiencies distract brokers from focusing on providing value to their clients through effective risk management.
The advent of blockchain technology can dramatically streamline the insurance lifecycle by allowing multiple parties to conduct and record transactions through a peer-to-peer network. Although some blockchain platforms are public (i.e., permissionless) like Bitcoin, brokers can leverage the power of private (i.e., permissioned) networks, in which only authorized participants can share and validate information. Blockchain networks also enable “smart contracts” that execute automatically once their terms are met, without the need for human intervention. (For more insights on how blockchain works, see our ebook “Demystifying Blockchain.”)