Chain of a Lifetime: How Blockchain Technology Might Transform Personal Insurance

How Blockchain Technology Might Transform Personal Insurance - Long Finance, 2014

58 Pages Posted: 6 Oct 2020

See all articles by Michael Mainelli

Michael Mainelli

Gresham College; Z/Yen Group

Chiara Von Gunten

Z/Yen Group Limited

Date Written: December 01, 2014

Abstract

"Chain Of A Lifetime: How Blockchain Technology Might Transform Personal Insurance" is the outcome of a research project conducted between August and December 2014 which explored how blockchain technology might transform personal insurance and in particular interactions among individuals and insurance companies over time.

Blockchain technology's main innovation is an electronic public transaction record of integrity without central authority. Beside cryptocurrencies and distributed payment systems, blockchain applications could include areas of finance where a central, trusted third party has traditionally been used, trade reporting, depository receipts, escrow accounts or trade finance. Blockchains can contain set of documents, record assets and help to manage interconnected devices. Emerging applications, such as smart contracts and decentralised autonomous organisations, might in future also permit blockchains to act as automated agents.

The report concludes that blockchain technology could transform the way people manage identities and personal information; blur even further the divide between global and local; influence consumer perception of time; drive honesty and transparency; and, influence consumer perceptions of risk that could change the way insurers support mutualisation. The report highlights how, at the time of writing, most insurance companies do not yet seem ready to experiment with blockchain technology. They find it difficult enough to understand Bitcoin or cryptocurrencies. Non-insurers are more likely to be the first to create insurance or insurance-related applications. Blockchain applications in insurance are likely to start with digital identity systems and management of personal data.

Keywords: Blockchain, Personal Insurance, Insurance

JEL Classification: O00 - General

Suggested Citation

Mainelli, Michael and Mainelli, Michael and Von Gunten, Chiara, Chain of a Lifetime: How Blockchain Technology Might Transform Personal Insurance (December 01, 2014). How Blockchain Technology Might Transform Personal Insurance - Long Finance, 2014, Available at SSRN: https://ssrn.com/abstract=3676416

Michael Mainelli (Contact Author)

Gresham College ( email )

Barnard's Inn Hall
Holborn
London, EC1N 2HH
United Kingdom

Z/Yen Group ( email )

41 Lothbury
London
United Kingdom

Chiara Von Gunten

Z/Yen Group Limited ( email )

41 Lothbury
London
United Kingdom

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