Beyond the hype, a glimpse of blockchain’s real value
From blockchain’s early years, the insurance industry has grasped the potential advantages of a distributed ledger system that ensures consistency of data across a network. Many insurers were quick out of the starting blocks with distributed ledger technology (DLT) pilots and proofs of concept to experiment with its potential as a disruptive technology.
Yet unrealistic expectations about how quickly and easily the value of DLT might be realized, along with the cultural challenges of reshaping core industry processes, meant that the technology did not deliver the anticipated benefits. Some firms that launched pilots and proofs of concept—even successful ones—were uncertain about how to realize return on investment in a production setting.
Over the course of this blog series, I’ll be exploring why insurance organizations are emerging from this trough of disillusionment as well as how they can position themselves for success in the next wave DLT’s evolution.
Let’s start with a view of how industry perceptions of blockchain are evolving. One of the biggest changes is that insurers are beginning to look beyond DLT as an isolated enterprise technology.
Instead, they are starting to understand where DLT’s true value lies—as a catalyst for business ecosystem transformation.