How Insurers Can Get Ready for Blockchain
Despite concerns and questions, insurers believe blockchain will impact their organization and the industry itself. On the way forward, there are serveral key considerations insurers need to make. Here, we suggest some nesseccary steps to ensure success.
Blockchain success requires the active involvement and support of senior business leaders. Therefore, insurers should focus initially on applications that demonstrate value over the long-term. We recommend the following steps:
- Establish cross-functional teams. Blockchain projects should be driven by cross-functional teams with a business sposnor from the outset.
- Set clear goals.Assess blockchain’s sustainability to the business issue being addressed and clearly specify the objectives.
- Don’t wait until costs and benefits are clear. Learning will be iterative, and costs and benefits may only become defined more clearly as the project progresses.
- Stay flexible. Recognize that blockchain is still in the early stages of development; innovation will continue, and the infrastructure will evolve.
- Explore a viariety of platforms. This should include both permissioned and permissionless. For each use case, choose a platform based on how well it is tailored to the business need, and not the one with the most buzz.
- Gain experience from collaborations. Work together with other players across the value chain. Don’t understimate the importance, and challenge, of managing people to create an effective culture of collaboration. Work with industry partners and assess the obstacles in working successfully with external organizations.
- Focus on projects with real-world potential. The risk of doing nothing is greater than the risk of doin gthe wrong thing.
Want to learn more? Check out How insurers are prepping for blockchain.