DOI: https://doi.org/10.18371/fcaptp.v1i28.163063

BLOCKCHAIN AS A CATALYST FOR TRANSFORMATION OF BUSINESS PROCESSES IN INSURANCE

O. O. Shevchuk

Abstract


For insurance sector it was investigated that the blockchain technology is still in the innovation trigger phase, meaning that the spectrum of possible applications has not been fully explored yet. Insurers are currently requested to make a hard decision, that is, whether to adopt blockchain or not. The objective of this paperis to show the prospects for the transformation of insurance operational business processes in the context of innovative technologies.The research focuses precisely on the insurance sector, because among of 80 new, but real opportunities of using the blockchain technology, almost a quarter-ininsurance. Blockchain technology in combination with smart contracts can positively transform all insurers’ internal processes (from customer involvement, underwriting to loss management and fraud avoidance), and even allow companies to enter new markets with new products.

The article outlines the opportunities and potential of applying blockchain technology by the insurance sector of financial market, highlights the strengths and weaknesses of the technology, identifies the key advantages that blockchain provides for each of the insurer's main operational business processes: developing and selling an insurance product, data entry / identity assessment, risk assessment / premium calculation, customer service / back office, loss settlement and asset management.

The study concludes that it is important for Ukrainian insurers today to acquire the necessary competencies by developing prototype blockchain solutions and asses show the technology will affect the existing insurance business model and how it will be accepted by staff and customers. Insurers can begin to act by focusing attention on three broad topics: the innovation landscape, their own priority areas for action, and possible operating models.


Keywords


innovative technologies; blockchain; insurance; smart contracts; business рrocesses.

References


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GOST Style Citations


Gatteschi V. Blockchain and Smart Contracts for Insurance: Is the Technology Mature Enough? [Text] / V. Gatteschi, F. Lamberti, C. Demartini, C. Pranteda, V. Santamaría // Future Internet. — 2018. — № 10 (2). — Р. 20—26.

Lorenz J.-T. Blockchain in Insurance — Opportunity or Threat? [Text] / J.-T. Lorenz, B. Münstermann, M. Higginson, P. Olesen, N. Bohlken, V. Ricciardi. — New York NY, USA : McKinsey&CompanyReport, 2016. — P. 1—9.

Raikwar M. A Blockchain Framework for Insurance Processes [Text] / M. Raikwar, S. Mazumdar, S. Ruj, S. Gupta, A. Chattopadhyay, K. Lam // New Technologies Mobility and Security 2018 : 9th IFIP International Conference. — 2018. — P. 1—4.

Blockchain Technology in the Insurance Sector [Text]. — New York : McKinsey&Company, 2017.

Insurers and reinsurers launch Blockchain initiative B3i [Electronic resource]. — Available at: https://www.munichre.com/en/media-relations/publications/company-news/2016/2016-10-19-company-news/index.html.

Innovative Projects from Blockchain Hackathon Kyiv 2016 [Electronic resource]. — Available at: https://www.infopulse.com/blog/innovative-projects-from-blockchain-hackathon-kyiv-2016.

Adam-Kalfon P. Blockchain, a catalyst for new approaches in insurance [Electronic resource] / P. Adam-Kalfon, E. Dubreuil, М. Ricard, J. Zou, P. Maeder. — Available at: https://www.pwc.com.au/publications/pwc-blockchain.pdf.

Introducing Pay-Per-Mile Insurance [Electronic resource]. — Available at: https://www.metromile.com.

Gudymenko V. Smart Contracts in Insurance: A New Opportunity for Greater Efficiency [Electronic resource] / V. Gudymenko. — Available at: https://applicature.com/blog/smart-contracts-blockchain-insurance.

Sloof L. 19 digital marketing trends for 2019 and beyond [Electronic resource] / L. Sloof. — Available at: https://www.accenture-insights.nl/en-us/articles/digital-marketing-trends.





Copyright (c) 2019 O. O. Shevchuk

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770