April 22, 2021
Blockchain & Insurance
Linux Foundation is working with top insurers to create a blockchain-based platform for insurance
What: OpenIDL brings together some of the world’s largest insurance companies and technology providers to advance a common distributed ledger platform for sharing information and business processes across the insurance ecosystem. The first use case is regulatory reporting in Property and Casualty insurance.
Why it matters: This should open up new possibilities for innovation with blockchain and insurance, and we’re excited to see what comes of it. The real challenge is going to be how fast insurers will be to adapt to the coming changes.
Accelerating Digitization and the MGA innovation boom
What: We all know at this point that Covid is driving digital innovation, and one of the ways that innovation is playing out is through the creation of Managing General Agent (MGA) startups.
Quote: “MGAs are out there innovating,” said Paul Mang, Guidewire Software’s Chief Innovation Officer. “I like the idea that there is a lot of energy put into making insurance easier to consume.”
Why it matters: Insurance right now can be difficult to sell, and there are a lot of different approaches to fixing this problem. It’s exciting to see all of the energy around MGAs, as they are one of the ways we can make insurance more accessible.
Will insurtechs fill the Life Insurance gap left by traditional insurers?
What: According to the St. Louis Fed, “Life Insurance ownership has declined markedly over the past 30 years.” In 2016, there was an estimated $25-trillion gap between the coverage Americans held and what might be needed to cover expenses in the event of a loved one’s death.
Why it matters: Insurtechs are continually stepping up to fill the gaps in customer service and ease of access left by the traditional way of doing things. However, insurers that are ready to innovate will be able to use their existing name recognition and infrastructure to grow their value if they can step it up digitally.
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