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Combating disruption from insurtechs, legacy insurers have begun moving hard and fast to explore new technologies.

In further evidence of this, blockchain technology consortium R3 on Wednesdayannounced a new partnership with the Association for Cooperative Research and Development (ACORD) — a global organization that helps insurers innovate — to launch a new Centre for Excellence. The digital center will aim to help the global insurance industry deploy blockchain, or distributed ledger technology (DLT), according to a press release seen by BI Intelligence.

It will provide a forum for R3 and ACORD members to explore and develop DLT solutions for the insurance industry. R3 will give ACORD members access to R3 Wiki, a giant repository of research and resources collated by R3 members — including insurers like MetLife and Suncorp Group — as well as a dedicated insurance portal that will allow ACORD members to discuss their DLT projects among themselves and with R3 members.

Moreover, the consortium will use the center to provide DLT education to C-suite, management, and technology personnel at ACORD member companies. R3 will also leverage its existing regulator contacts to run a regulatory outreach program, enabling ACORD members to invite relevant regulators to participate in and oversee any DLT projects initiated within the center.

The insurance industry seems to be primed for widespread adoption of DLT. Because insurance involves many activities requiring contracts — claims filing and payouts, for example — DLT seems like a natural solution to automate many processes that are now manual, paper-heavy, slow, and error-prone, due to its smart contract capabilities. Moreover, insurance processes are often multi-party affairs, requiring a diverse range of players to reach a consensus, so DLT's ability to give multiple parties access to a single, centralized record would prove especially valuable within the industry. As a result, insurance seems likely to widely adopt DLT with alacrity.

Nearly every global bank is experimenting with blockchain technology as they try to unleash the cost savings and operational efficiencies it promises to deliver.

Banks are exploring the technology in a number of ways, including through partnerships with fintechs, membership in global consortia, and via the building of their own in-house solutions.

Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on blockchain in banking that outlines why and in what ways banks are exploring blockchain technology, provides details on three major banks' blockchain efforts based on in-depth interviews, and highlights other notable blockchain-based experiments underway by global banks. It also discusses the likely trends that will emerge in the technology over the next several years, and the factors that will be critical to the success of banks implementing blockchain-based solutions.

Here are some of the key takeaways from the report:

Most banks are exploring the use of blockchain technology in order to streamline processes and cut costs. However, they are also looking to leverage additional advantages, including increased competitiveness with fintechs, and the ability to use the technology to create new business models.

Banks are starting to narrow their focus, and are increasingly honing in on tangible use cases for blockchain technology that solve real problems faced by their businesses.

Regulators are taking an increased interest in blockchain technology, and they're working alongside major banks to develop regulatory frameworks.

Blockchain-based solutions will start to emerge in different areas of financial services. The most successful solutions will solve specific problems for banks and attract a large enough network to create widespread benefits.

In full, the report:



Outlines banks' experiments with blockchain technology.

Details blockchain projects at three major banks — UBS, Credit Suisse, and Banco Santander — based on in-depth interviews.

Discusses the likely trends that will emerge in the technology over the next several years.

Highlights the factors that will be critical to the success of banks implementing blockchain-based solutions.

Interested in getting the full report? Here are two ways to access it: