Page 19 - Insurance Times December 2021

Cover Story

SCALABILITY - AN

ISSUE OF

MAINSTREAM

BLOCKCHAIN IN

THE INSURANCE

INDUSTRY

Executive Summary users. The magnitude of increase in users and transactions
poses challenges in Blockchain technology adoption. To
The article is the outcome of a study the authors undertook
streamline the process each node must be operating on a
to find out answers to the scalability issue faced in adoption
of Blockchain technology in the insurance industry and on network where there is sync in processing power from all the
the prevalent concerns of experts in deploying this technology parties. If a network exceeds its maximum capacity than the
on large scale. average amount of transaction decreases and affects the
business.
In this article, we have captured the experience of industry
The recommendations which emerge are that Blockchain
experts by speaking to them and focused on how Blockchain
cannot be scaled alone by increasing the block size or
becomes a concern in the insurance industry when peer's
decreasing the block time by reducing the hash complexity
network reaches close to their maximum capacity. as is practiced by many organizations now.
The main findings of the study are that the insurance Peer groups are dependent on each other for capacity limits
penetration in India which is about 3.76 percent at present and they must plan to evolve the infrastructure of the
and is growing in size with time is increasing the level of deprived peer by either investing in them or by providing
leveled infrastructure.
About the author 1.1 Introduction
& & & & &
Anirudh Lal Dr. Manoj Pareek In the Insurance industry, communication needs to flow
Ekta Bhatia and Radhika. Assistant Professor between the parties mainly constituted of Insurance
Students of PGDM Birla Institute of companies, brokers, and banks. Earlier every party used to
programme Management Technology have their database from where they could share information.
BIMTECH (BIMTECH) The database for each of them was centralized. The

The Insurance Times, December 2021 19