Choosing Blockchain Use Cases in Insurance: Guiding the Hammer Toward the Real Nails

by Michael Fitzgerald, September 13, 2016
Industry Trends
Global

Abstract

Celent has released a report titled Choosing Blockchain Use Cases in Insurance: Guiding the Hammer Toward the Real Nails. The report was written by Mike Fitzgerald, senior analyst in Celent’s Insurance practice.

The report discusses the fact that, as with any promising, new technology, distributed ledger technology (DLT), also known as blockchain, is often discussed in terms of being a proverbial “hammer” for many solutions, which in turn look like nails. The fact is that many potential applications under review can be built on a number of different platforms. 

This report provides insurers with a tool to evaluate DLT solutions and identify those that are most suitable and have the greatest potential for return. Celent, in collaboration with Pascal Bouvier of Santander Innoventures, analyzes four insurance-specific use cases against six evaluation criteria to demonstrate the various considerations to use when prioritizing early efforts.

“Insurers are encouraged to conduct tests that can increase their understanding of the implications of the technology for their firm,” says Fitzgerald. “But there are important considerations, specific to DLT use, in selecting a proof-of-concept effort. Ignoring these increases the risk of a failure.”

The report also forecasts expected developments in DLT in the short to medium term (one to three years). This 22-page report contains four figures and seven tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Use Cases

3

 

Evaluation Criteria

5

 

Structure of Use Case Evaluation

6

Use Case Evaluation

7

 

Validation of Expertise/Provider Management

7

 

Layered Risk Participation

8

 

Valuation of Assets

10

 

Alternative Marketplace

12

The Way Forward

14

Leveraging Celent’s Expertise

17

 

Support for Financial Institutions

17

 

Support for Vendors

17

Related Celent Research

18

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