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Blockchain for the Insurance Industry | How will it Impact you?

03 June 2019 Morne Olivier

Blockchain for the Insurance Industry in the South African Market Place. How will this new technology impact you and your work with your clients? This is a series I am doing to bridge the gap between what we know as the Internet and the future of the Internet?—?Blockchain.

Most people have by now heard about Bitcoin, maybe Ethereum and maybe even Blockchain. I take this into context for the average South African. I believe the majority still believes Bitcoin is a scam?

Today the Internet is filled with amazing information. What is the Internet? By definition it says:

“a global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols.”

I touch on the history of communication here:

“Blockchain is a Technological advancement for the world, these kinds of advancements only come around every so often, if you think the NET’s entrepreneurial stages started in 1993. Web 2 was realized when the Internet became a social hub of activity in 2005. Today 2019 we have Web 3 & 4 in development.

*Writing as a medium has evolved from day 1 as a form of Communication and Education. From the Printing Revolution in 1450 through Newspaper & Magazines in the 17/1800’s to the evolution of Social Media content during the1900’s to the Internet today.”

How many of you know Bitcoin is a Blockchain? Blockchains and Cryptocurrencies are being developed for the New Internet. A Blockchain is an interlinked Immutable Ledger. Cryptocurrencies can exist on Blockchains but also don’t need to, in other words, you don’t need a Cryptocurrency on a Blockchain. Crypto’s or Digital Currencies is developed on Blockchains as means of a Global payment system and also to develop transaction micro-economies within the Blockchain itself as testing and development aspects take place.

What does this have to do with you and the Insurance Industry? Well, Internationally Large Corporations are busy with their shift onto Blockchains. You can search for example IBM on Ethereum and you’ll find that Microsoft has developed Microsoft Azure, a platform that allows developers to create applications (APP’s/DAPP’s), for enterprises on the Blockchain. {Here you’ll be interested to know that APP’s as you know them will disappear once the Internet becomes Blockchain based. Our new APP’s will be known as DAPP’s (Decentralized Applications), new DAPP’s will have all the more powerful features Blockchains provide.}

Learn more about DAPP’s here DAPP.COM that operate on some of the world’s current biggest Blockchains: ETHEREUM (ETH), EOSIO (EOS), STEEM (STEEM), TRON (TRX), IOST (IOST) & TOMOCHAIN (TOMO)

Visit https://azure.microsoft.com/en-us/solutions/blockchain/ for a Microsoft Explanation.

In short, this means that Companies like IBM are busy with processes to cross over from our current Internet to the Blockchain Internet or Web3 & Web4.

What happens when big decisions get made in the board room? It filters down. As these Large Corporations start building their data and ledgers on the new Blockchain computer network, in time it will mean that when you transact or input data from your client on your computer that it will be on the Blockchain. Not too scary because it’s just another Internet system, right?

Yes, basically yes, Blockchain is the new and improved Internet. It is driven by a Decentralized Nature (no single entity controls it), Open Source, a Global Team of developers creating the new Internet.

This Open Source Ledger is Public and distributed amongst all its users, in other words, anyone can see the information, just not necessarily from whom. Blockchain is therefore also known as a Distributed Ledger Technology {DLT}

In the future, it will mean that when you enter your client’s details for Insurance or Investment purposes, they will be able to go retrieve the information themselves. This, of course, will mean absolute transparency and accuracy as information entered on the Blockchain once verified cannot be changed, {an Immutable Ledger}. The other big factors to keep in mind are Cost and Time-Saving capabilities. A lot of third-party costs and paperwork will be cut out, speeding up claims and eradicating fraud.

Here is Santam’s view on Blockchain in Insurance

Today there is plenty of Blockchains and various Blockchain Solutions being developed to improve specific categories of Business infrastructure. Insurance and Investment Platforms are one of them. The development should be seen as a positive step forward for the Global Economy to run Smoother and more Cost Effectively. It will be your decision to embrace this Technology or not but wouldn’t it be better to know about what is coming than not? Wouldn’t it be better to be prepared and scout the opportunities that will come with it?

Here is an article on specific Blockchains being developed for the Insurance market:

https://igniteoutsourcing.com/blockchain/blockchain-and-insurance-industry/


I will cover these and other relevant Blockchains on FAnews in the next few weeks by interpreting and explaining them.

Education is key, forming part of communities to understand more about the processes is essential. I therefore urge everyone to ensure you have at least one Social Media Platform active and start joining some group discussions, start asking questions and learn about Blockchain.

My current favorite Platform is LinkedIn

Morne Olivier

Freelance Content Marketing specializing in the Education of Blockchain Technology.

I am not a Financial Advisor

Disclaimer



Glossary:

Blockchain

A Blockchain originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. By design, a blockchain is resistant to modification of the data.

Bitcoin (?TC)

Bitcoin is a cryptocurrency on the Bitcoin Blockchain and is a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer Bitcoin network without the need for intermediaries

Decentralized

Decentralization is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.

Reffrence:

https://101blockchains.com/hyperledger-vs-ethereum-2/

https://www.weforum.org/

chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/http://www3.weforum.org/docs/WEF_Future_of_Jobs_2018.pdf

https://www.santam.co.za/blog/intermediary-advice/blockchain-and-smart-contracts-revolutionising-the-insurance-industry/

https://www.linkedin.com/showcase/santam-intermediaries/

https://en.wikipedia.org/wiki/Bitcoin

 


 

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