Experts say the new technology can be used to automate insurance solutions and bypass third parties


The insurance industry faces a big threat from blockchain, experts have warned.

Insurance companies collect premiums, pool the money and reassign the money to whoever has a valid claim.

By using blockchain technology new players will be able to offer insurance solutions that bypass insurers altogether.

AXA director of innovation and foresight Laurent Benichou said: “Of course there are a lot of services around that, but the core service insurers provide is the payment or reallocation of pooled money. This can be automated through blockchain and is therefore a big threat for the insurance industry.”

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