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Understanding blockchain for insurance use cases

D.S. Popović, C. Avis, M. Byrne, Chong-Soo Cheung, M. Donovan, Y. Flynn, Charles George Fothergill, Zeinab Hosseinzadeh, Z. Lim, Janat Shah

2020British Actuarial Journal44 citationsDOIOpen Access PDF

Abstract

Abstract Insurance industry practitioners have deep knowledge of their industry, but there is a lack of a simple-to-understand, practical blueprint on applying distributed ledger technology solutions, including blockchain. This paper provides a practical guide for actuaries, risk professionals, insurance companies and their Boards on blockchain, including an education piece to provide an understanding of the technology. Examples of real-world applications and use cases in insurance are provided to illustrate the capability of the technology. The current risks and challenges in adopting the technology are also considered. Finally, a checklist of issues to consider in adopting a blockchain solution for insurance business problems is provided.

Topics & Concepts

BlockchainBlueprintDistributed ledgerActuarial scienceInsurance industryChecklistBusinessRisk analysis (engineering)Financial servicesSimple (philosophy)Computer scienceFinanceComputer securityEngineeringEpistemologyCognitive psychologyPsychologyMechanical engineeringPhilosophyBlockchain Technology Applications and SecurityDistributed systems and fault toleranceTransportation and Mobility Innovations
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