The Bitfury Group is partnering with risk and insurance advisory Risk Cooperative to pioneer blockchain applications in insurance intermediation market. That industry is reportedly worth $60 billion USD.
Bitfury, calling itself “the world’s leading full service blockchain technology company”, said the partnership would spur leading insurance firms to adopt blockchain solutions.
Valery Vavilov, CEO of The Bitfury Group, said blockchain could be a catalyst for new insurance business models. He also repeated the now-common claims that blockchain providing extra transparency and security for the industry.
Blockchain to Address Underserved Insurance Opportunities
According to Bitfury’s announcement, the global insurance industry writes more than $5.5 trillion in annual premiums. However, most risk — natural, man-made or emerging — remain underinsured or completely uninsured.
Here’s where the opportunity for blockchain exists. The legacy technologies driving existing providers can actually hinder their ability to cover these existing and new risks.
The two companies said blockchain is a “foundational technology in designing new levels of access that can help improve insurance company risk appetite, customer proximity and trust.”
Insurance could be a goldmine for blockchain and smart contracts, with big players jumping on board. IBM and American International Group (AIG) also just partnered to develop a smart contract-based insurance pilot for Standard Chartered PLC. That trial will live on IBM’s Hyperledger Fabric platform.
About Bitfury and Risk Cooperative
While best-known in the cryptocurrency industry as a bitcoin mining ASIC supplier, Bitfury has long sought to position itself as something with a far wider scope. The Bitfury Group now offers a range of hardware and software blockchain solutions to all sectors. It promotes any solution for moving assets securely on a blockchain, and the peer-to-peer economy itself.
It has offices in the U.S., Europe and Asia.
Risk Cooperative is an American insurance advisory firm specializing in strategy and risk. It helps organizations “address risk, readiness and resilience”. Its headquarters are in Washington, D.C.
Will blockchain transform the global insurance industry? Let’s hear your thoughts.
Images via Bitfury, Pixabay