2016年-普华永道全球_Blockchain_The_5_billion_opportunity_for_reinsurers_8页_1mb

Blockchain: The $5 Billion Opportunity for Reinsurers

Core Content

Blockchain technology presents a significant opportunity for the reinsurance industry, with the potential to reduce costs and improve client satisfaction. The technology enables the creation of tamper-proof, shared ledgers that can streamline processes such as placement, claims settlement, and compliance checks. This innovation is particularly relevant for reinsurers, who are positioned to build some of the largest blockchain applications outside the payments sector.

Main Points

• Cost Reduction and Efficiency: Blockchain can reduce reinsurance expense ratios by 15% to 25%, potentially saving the industry $5–10 billion annually. This is due to more efficient data processing, reduced manual rekeying, and lower claims leakage and fraud.
• Enhanced Risk Understanding: Blockchain solutions offer better visibility into identity and risk, which is crucial for reinsurance operations involving multiple stakeholders.
• Smart Contracts: These can automate and streamline the reinsurance value chain, from treaty processing to premium and commission payments, and also speed up claims processing and verification.
• Transparency and Trust: A fully transparent system where all underlying risks are recorded on a blockchain can aggregate information into a reinsurance blockchain, ensuring all transactions, documents, and data flow seamlessly.
• Opportunities in Wholesale Insurance: Blockchain can reduce costs, errors, and time, provide instant access and legal certainty, minimize reputational risks, and eliminate a single point of failure.

Key Benefits

• Processing Efficiency: Eliminate redundant data entry and task duplication.
• New Business Opportunities: Enable entry into new markets or products, such as catastrophe swaps.
• Full Transparency: Aggregating all risk data onto a blockchain can lead to a major transformation in reinsurance operations.

Proof of Concept

PwC is developing several proof of concept applications to demonstrate the practical use of blockchain in insurance and reinsurance. These initiatives aim to show that blockchain solutions not only work but also address specific business challenges effectively.

Use Cases with Highest Benefit

• Placement and Contract Lifecycle: Automating the process of ceding and retroceding risks.
• Claims Management: Accelerating the claims process and reducing errors.
• KYC and AML Compliance: Ensuring accurate and real-time compliance checks.

Implementation Considerations

To determine if blockchain is suitable for a particular use case, consider the following criteria:

• Are multiple parties sharing data?
• Will multiple parties be updating data?
• Is there a requirement for verification?
• Are intermediaries adding cost and complexity?
• Are interactions time sensitive?
• Will transactions by different participants depend on each other?

If at least four of these conditions are met, blockchain could be a viable solution.

How to Get Started

The reinsurance industry should collaborate to seize the opportunities blockchain presents. Working together can help in developing practical use cases and understanding the technology's full potential.

Contacts

• Stephen O'Hearn - PwC Global Insurance Leader
  Email: stephen.ohearn@ch.pwc.com
  LinkedIn: in stephenohearn1

• Jonathan Howe - PwC UK Insurance Leader
  Email: jonathan.p.howe@uk.pwc.com
  LinkedIn: @JonathanHowePwC | in jonathanhowepwc

• Steve Webb - PwC UK Financial Services Blockchain Leader
  Email: steve.webb@uk.pwc.com
  LinkedIn: in sawebb

• Gavin Phillips - Partner, PwC UK
  Email: gavin.phillips@uk.pwc.com
  LinkedIn: in gavinphillipspwc

• Arthur Wightman - Bermuda Insurance Leader
  Email: arthur.wightman@bm.pwc.com
  LinkedIn: @ArthurWightman | in Arthurwrightman

• Michael Cook - Director, PwC UK
  Email: michael.g.cook@uk.pwc.com
  LinkedIn: @mcook57109828 | in michaelgordoncook