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.”