The most significant, essential types of insurance are key cogs in the American economic sector and are critical to the well-being of countless individuals and families. The life/health insurance sector was responsible for $638 billion in new premiums written in 2015, and the property/casualty sector grew three percent to a record high of $520 billion. But it’s not all roses and lilacs when it comes to the insurance industry. Tellingly, 35% of insurer directors at a PwC forum said that they believe the industry landscape will remain the same, but the players will change substantially in a matter of 5–10 years. 44% said that “most insurers will not survive, at least in their existing form.”
This indicates that, among other factors, innovation and embracing technological differentiators will be key in determining which players have staying power and which will slide into irrelevance. The blockchain possesses the potential to be one of the most impactful developments for insurers and their customers, encompassing use cases that include fraud prevention, reducing administrative costs, asset tracking and assessment, and even new forms of insurance, such as microinsurance.