McKinsey Report Weighs Blockchain Impact on Insurance Industry

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

Jul 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

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First a Hum and Then a Bang –Niagara Falls Residents Forced to Reckon With Crypto Mining

The city in New York has imposed a moratorium on new bitcoin mining operations as complaints about noise were compounded by an explosion and fire at a mining site last week.

The city in New York has imposed a moratorium on new bitcoin mining operations as complaints about noise were compounded by an explosion and fire at a mining site last week.

CoinDesk - Unknown
2
CoinDesk - Unknown
No es solo LUNA: las aplicaciones DeFi de Terra han perdido $28.000 millones

Los inversores han abandonado en gran medida el ecosistema Terra, ahora evidente en los protocolos DeFi en la blockchain, y los analistas siguen siendo escépticos sobre sus perspectivas a largo plazo.

Los inversores han abandonado en gran medida el ecosistema Terra, ahora evidente en los protocolos DeFi en la blockchain, y los analistas siguen siendo escépticos sobre sus perspectivas a largo plazo.

CoinDesk - Unknown
3
CoinDesk - Unknown
Crypto News Roundup for May 20, 2022

With bitcoin avoiding a steeper tumble and a look at what’s behind the biggest stablecoin of them all, CoinDesk’s "Markets Daily" is back with its latest news roundup.

With bitcoin avoiding a steeper tumble and a look at what’s behind the biggest stablecoin of them all, CoinDesk’s "Markets Daily" is back with its latest news roundup.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin Drifts Lower, Support at $25K-$27K

BTC is roughly flat over the past week. Technical signals suggest a neutral to bearish outlook.

BTC is roughly flat over the past week. Technical signals suggest a neutral to bearish outlook.

CoinDesk - Unknown