McKinsey Report Weighs Blockchain Impact on Insurance Industry

McKinsey & Company reports on how insurance companies might be able to capitalize on blockchain.

AccessTimeIconJul 6, 2016 at 4:00 p.m. UTC
Updated Sep 11, 2021 at 12:21 p.m. UTC

A recent report by management consultancy firm McKinsey & Company examines whether blockchain technology will have a positive or negative impact on the insurance industry.

The report, released earlier this month, noted that as many as 20 blockchain startups are focused on some aspect of the insurance market today.

McKinsey breaks down “the most promising insurance-related use cases” into three categories: enabling growth, increasing effectiveness, and reducing cost by automating key processes, all of which the report asserts could have a positive impact for insurance firms.

The report goes on to highlight potential threats, positing that network scalability, security, and a lack of industry standardization remain lingering issues.

The report concludes:

"Blockchain is a technology ready for exploration by insurers. But its exploitation is still a long way off. This is because blockchain is functioning as a distributed system and, thus, its value mostly depends on collaboration with competitors, suppliers, or others."

The full report can be found below:

Image of home via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.