Page 22 - Insurance Times December 2021

partnered with EY for coming with Blockchain-based
insurance models.

Reinsurance
The introduction of Blockchain in reinsurance would remove
15-25% of expenses, delivering savings of about $10 billion.
This can be achieved only when a Blockchain ledger is adopted.
A single policy is divided among numerous insurers, need for
streamlining the records would become feasible.
Micro Insurance
It is being adopted globally with around 135 million risks on a
global level. The potential market is estimated to boom as
Blockchain can help include those who look for specified and future. The opportunities for the insurance companies
affordable types of insurance policies. This would provide a available to insurers were also studied.
transparent mode of transactions, bypassing corruption, Methods
while making it a simple and effective mode. The study conducted is based on the combination of primary
Parametric Insurance data and secondary data using qualitative research methods.
We approached 12 industry experts for conducting in-depth
It is also referred to as Index based insurance. It pays the
predetermined amount as and when a specific criterion is interviews with the mand five experts out of them responded
to be a part of the interview process. The experts chosen were
met. Blockchain makes it possible for a smart contract to
take the place resulting in saving heavy administration costs. those who were conversant and had experience in the usage
Since it requires only certain criteria to be met for a claim to of Blockchain technology We administered a questionnaire to
these industry experts and collected their responses to enhance
get triggered, a subjective situation does not exist, avoiding
any kind of human intervention to process claims. our understanding of real life applicability of Blockchain
technology. A total of 20 questions were asked, in addition to
basic information on the company's use of Blockchain
How Internet of things (IoT) and Blockchain form
technology, opinions on the scalability challenge in Blockchain,
a ecosystem and various solutions to the problem formed part of
Internet of things (IoT) connects a lot of devices, the amount questionnaire for in-depth interviews. Table 1 of this article
of knowledge generated from every one of the devices can contains the important questions asked in the questionnaire.
increase considerably. For example, there have been 26.66
billion active IoT devices in 2019 and nearly 127 IoT devices The responses of the interviews were compiled and some
hook up with the web each second. responses have been summarized using descriptive statistics.
These are depicted in Figures 1 and 2 of the paper. We did not
This information is extraordinarily vital for insurers to develop approach end users as respondents due to little awareness about
correct figure models and usage-based insurance models.
the subject among them. Since the number of experts were only
five we have not applied any inferential statistical methods on
2.1 Objectives and Methodology of the data. For secondary data we collected data and perspectives
Study: through available research papers in journals, websites, and

Objectives published reports of technology and consulting companies.
The study tried to find out scalability issues in the adoption of
Blockchain technology within the insurance industry. The 3.1 Results and Discussion
study sought to get insights on how serious the scalability The above discussion in detail gave us a broad overview of
issue was and to find out ways to resolve and find solutions to the potential applications of Blockchain technology in the
the issue of scalability. insurance sector. The strengths of Blockchain technology are
mainly related to its technological aspects while these aspects
Further, we tried to find out changes in the insurance industry have certain limitations that can easily disrupt its functionality.
with the adoption of various Blockchain applications as we
foresee major players using the technology in the coming Based on our exploratory research, below mentioned

22 The Insurance Times, December 2021