Captive insurers say the future is blockchain
Captive insurance executives say the future for the industry lies in blockchain and that companies and regulators “are taking early steps to widen its adoption.”
Rocco Mancini, consultant, captive solutions at Marsh, and Havell Rodrigues, chief executive officer for Adjoint, addressed the annual Vermont Captive Insurance Association (VCIA) conference in Burlington, VT.
Mancini said in the short term blockchain could enable a lot of more operational efficiencies from “handl[ing] claim payments or at multinational business units, where there are multiple regulations, sharing data and information freely…Blockchain creates the opportunity to share information, making sure that it is immutable.”
Industry ills a challenge
This traditionally low-profile sector, is defined chiefly by its insureds choosing to put their own capital at risk and work outside of the commercial insurance marketplace for tailor-made products. Captive insurance customers count on availability, price stability along with solutions and flexibility as market issues such as cyber liability dictate enhanced coverage.
However, blockchain Rodrigues said, is not a panacea for industry ills and highlighted the challenges the industry faces that hopefully the technology can address and further its growth.
Among the many inefficiences include: movement of premium payments, tracking the payments made by a local subsidiary that is part of a captive and ensuring payments are going to the right location at the right time.
“If the industry can address these challenges and create streamlined processes where data and information about money is moving very smoothly, I believe that the captive industry is going to probably grow from where it is today.”