March 01, 2017 Sharon Cronin


In Tom's latest piece for the Actuarial Post, he talks about blockchain and if it will, in fact, have any impact on the Life Insurance & Pension industry.

You can read the full article here: Blockchain – Has it really any value for L&P?

Before reading the article, maybe we should explain what blockchain is not as it might be easier.

Blockchain is not bitcoin

While blockchain is the underlying technology that is used in bitcoin, it is not bitcoin. Bitcoin is simply an application that is using blockchain technology, so you are not suddenly going to be accepting bitcoin for payment.

Blockchain will not revolutionise the Life Insurance and Pension industry overnight.

Blockchain is still in its infancy and will take time, investment and support from Life Insurance and Pension industry to turn any proof-of-concept into a working model.

Blockchain is not rocket science

Blockchain is simply a ledger with a method of sending and receiving messages.  If you come from an accounting background it is simply recording the debits & credits instantly, so there is always one view.

Blockchain is not foolproof

Blockchain could have serious capacity issues. At present, transaction volumes are relatively small, but they are rising fast. As volumes increase, can we expect that speed will be degraded and transactions delayed thereby losing any benefit from blockchain?

Blockchain is not a thing

Blockchain is the technology that will enable the thing. The same way that the internet does not generate business, but it enables your organisation to be found online.

So why do we like blockchain, we see blockchain helping our clients with the following 4 C's:

  • Capital: We see an increase in capital efficiency
  • Control: We see no opportunity for multiple version of the data
  • Compliance: We see that compliance is implicit as is audit and access
  • Clarity: Lastly we see the potential for greater clarity and smarter contract overlay

With that said... what do we see coming first. We actually see that Robo Advice will come first before Blockchain. If you want to understand how Robo advice or Blockchain can help your organisation contact us.

robo-advice, blockchain

Sharon Cronin

Sharon is Marketing Manager at Exaxe. She oversees the global marketing activities of Exaxe which includes marketing communications, marketing strategy, digital marketing and public relations. Sharon holds a Bachelor of Arts in Economics and English and a Master of Science in Marketing.


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