Marsh, working with IBM, ACORD, and ISN, plans to launch a proof-of-insurance solution on blockchain by the end of the year. There have been many possible use cases discussed for utilizing blockchain in the insurance industry, and the concept of it as a central data validation aligns with projects outside of the insurance industry as well. Blockchain has been suggested or piloted as a way to validate diamond provenance and to secure and maintain privacy for personal medical data, and in comparison to that insurance ID cards sounds like a more straightforward task.
As with many blockchain projects, the question is whether the blockchain technology serves a critical purpose or if the same problem could be resolved with better automation and transparency using a company’s existing technology platform. With a single central broker managing insurance certificates, it may seem like that’s the case. But proof-of-insurance ultimately involves more than a single organization, and what is now the first step may end up becoming a larger, distributed ledger with access by multiple insurers and brokers. When blockchain creates a trusted exchange at the heart of many interested parties, then it provides a value that goes beyond what other traditional data platforms can provide.
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