PA business transformation expert, Stefan Knapp, has had a byline article published in which he shares his view on blockchain technology in financial services. According to Stefan, the technology has the potential to change the entire sector in the next five to 10 years – specifically the competition terms in the insurance industry, where the technology can help improve the customer experience.
Stefan explains: “Simplicity and speed however, are vital parameters. Imagine a customer buying a car, a purchase that is embedded in the blockchain process. A later transaction is registered, when the car is taken to the auto repair shop, and via a programme that automates actions based on certain transactions in the blockchain, a new transaction, the payout of the damage cover for the car, is activated.”
Stefan goes on to say that blockchain technology may be difficult to utilise in the short term as it is not considered a disruptive technology. Instead, it is a rather fundamental technology – in the line of the technology that formed the base of the internet in the 1970s. However, the technology may create an entirely new foundation for global economic and social systems.
“It will take a while before the technology accelerates to create a fundamental revolution, but the insurance industry needs to start exploring the potential now,” concludes Stefan.
Stefan Knapp is business transformation expert at PA Consulting Group