PwC's Belfast-based blockchain technology team worked with Z/Yen in undertaking the global industry survey.The report, which is based on interviews with brokers, insurers, reinsurers, regulators and trade bodies from across the global wholesale insurance market, reiterates what Z/Yen executive chairman Michael Mainelli has been saying about blockchain-type solutions for ages.As well as cost reduction and improved efficiency, blockchain could be a transformative technology changing the way the industry operates, enabling revenue growth in the sector as higher-quality service leads to new business, said a statement.Z/Yen and PwC note that relationships with customers, regulators and business partners should improve as blockchain reduces errors and improves accuracy.PwC's Belfast-based blockchain technology team worked with Z/Yen in undertaking the global industry survey, which was the first global initiative intended to determine how Blockchain technology could revolutionise and transform the world's insurance industry.The report outlines three areas where blockchain technology could have the greatest impact on wholesale insurance:
House of Lords and bank of England to mull 'Britcoin'The House of Lords Economic Affairs Committee will take evidence from the Deputy Governor of the Bank of England on blockchain technology next week Tuesday 19th July .Blockchain is the distributed ledger that allows Bitcoin to function as an online currency.It's no secret that the Bank of England has been looking closely at cryprocurrencies and has published papers on the technology, and like a number of central banks is looking at the possibility of using digital currencies.The Committee will also hear from academic experts and financial services professionals engaged in the developing technology such as: Dr Ben Broadbent, Deputy Governor, Monetary Policy, Bank of England; Dr Catherine Mulligan, Associate Director, Imperial College Centre for Cryptocurrency Research; Professor Michael Mainelli, Emeritus Mercers' School Memorial Professor of Commerce, Gresham College; Lord Spens, Transformation and Assurance Director, PWC; Blythe Masters, chief executive officer, Digital Asset Holdings, LLC; and Simon Taylor, co-founder and director of Blockchain, 11:FSIn the session with Dr Ben Broadbent the Committee will explore the prospect of a central bank digital currency and the effect it could have on commercial banks, predictions that blockchain technology could produce annual savings of $16bn in administration costs for financial services firms and what risks the technology may pose to financial security, said a press invitation.
Blockchain is well suited to the 'complicated game' of data sharing between insurers and brokers, Michael Mainelli saysMichael Mainelli, chairman of the Z/Yen think-tank, believes blockchain is currently a better use case for the insurance sector than the banking arena.He said banks have joined consortiums like R3 "so at annual general meetings, when some shareholder at the bank wants to hear about blockchains, the directors can say that they are 'participating in the largest banking blockchain consortium on the planet'."Unfortunately I think this is preventing them from rolling up their sleeves and looking at a lot of back office processes and data sharing problems, which is probably where the larger and more immediate benefits really are."Mainelli and Z/Yen have been constructing database solutions for the financial services industry for decades, and mutual distributed ledger aka blockchain technology since 1995.He pointed out that blockchain-like encrypted systems are well suited to a "complicated game" of data sharing between insurers, reinsurers and brokers.