A high level of debt partly caused the speed of Blockbuster video’s demise, but its failure was inevitable because it didn’t adapt fast enough to technological changes. Likewise, the insurance industry will be transformed in the next 10 to 15 years, because of Blockchain and AI. Incumbents that sit on the sidelines will be the Blockbusters of the 2020s.
Arguably insurance could be the industry most impacted by blockchain. Why? The insurance industry involves bureaucracy and inefficiency spread across multiple organizations for a single transaction. Just like supply chain. Except that existing supply chain systems are more sophisticated compared to the current state of the insurance industry.
There will unquestionably be winner and losers.
The winners will be:
- startups who transform insurance sectors using blockchain
- incumbents who collaborate to address some of the opportunities presented by blockchain but also to standardize and automate procedures across the industry to reduce the bureaucracy
The losers will be those that sit on the sidelines to wait and see, and discover they can no longer compete.
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