DAC Beachcroft report predicts blockchain impact, another IPT rise and increased focus on corporate governance for brokers.
Brokers could be eliminated from some parts of the insurance distribution chain if blockchain is used to implement what is known as smart contracts.
According to a report by DAC Beachcroft blockchain/smart contracts can be used to automate digital claims.The report, Insurance Market Conditions & Trends 17/18, stated:
“They can automate the claims process, enabling digital claim submission (via sensors or internet-connected data sources) and processing (eliminating the need for brokers and loss adjusters) and making payments.”
The document further explained that distributed ledgers (the block chains) are shared databases comprising digital lists of transaction records. Their unique characteristic is that identical copies of the ledger are ‘distributed’ among multiple hosts, who validate transactions written as ‘blocks’ through a consensus process. The blocks are then encrypted.
However it was also noted that large complex claims may still require human intervention.
IPT
The report examined the top trends likely to impact the insurance world in 2017/18.It also warned that there could be further changes to the IPT rate.
DAC Beachcroft partner, Helen Faulkner noted in the report: “The industry has made a powerful case for not increasing IPT further after the sharp rises of the last two years with the core rate now at 12%.
“IPT is already set at 20% for travel insurance and mechanical breakdown and closing this gap could be tempting for the Chancellor.
”The sector has already witnessed numerous IPT increases and the idea of raising the tax to 20% has already been mooted.GDPR
In addition the report also examines the impact of GDPR regulations and Senior Managers’ Regime.
It noted there will be an “increased focus” on corporate governance. GDPR comes into force in May 2018.Partner Matthew Rutter pointed out...continue reading:
https://www.insuranceage.co.uk/insurer/3142746/blockchain-could-eliminate-the-need-for-brokers
Brokers could be eliminated from some parts of the insurance distribution chain if blockchain is used to implement what is known as smart contracts.
According to a report by DAC Beachcroft blockchain/smart contracts can be used to automate digital claims.The report, Insurance Market Conditions & Trends 17/18, stated:
“They can automate the claims process, enabling digital claim submission (via sensors or internet-connected data sources) and processing (eliminating the need for brokers and loss adjusters) and making payments.”
The document further explained that distributed ledgers (the block chains) are shared databases comprising digital lists of transaction records. Their unique characteristic is that identical copies of the ledger are ‘distributed’ among multiple hosts, who validate transactions written as ‘blocks’ through a consensus process. The blocks are then encrypted.
However it was also noted that large complex claims may still require human intervention.
IPT
The report examined the top trends likely to impact the insurance world in 2017/18.It also warned that there could be further changes to the IPT rate.
DAC Beachcroft partner, Helen Faulkner noted in the report: “The industry has made a powerful case for not increasing IPT further after the sharp rises of the last two years with the core rate now at 12%.
“IPT is already set at 20% for travel insurance and mechanical breakdown and closing this gap could be tempting for the Chancellor.
”The sector has already witnessed numerous IPT increases and the idea of raising the tax to 20% has already been mooted.GDPR
In addition the report also examines the impact of GDPR regulations and Senior Managers’ Regime.
It noted there will be an “increased focus” on corporate governance. GDPR comes into force in May 2018.Partner Matthew Rutter pointed out...continue reading:
https://www.insuranceage.co.uk/insurer/3142746/blockchain-could-eliminate-the-need-for-brokers