10th August 2022
More than 20% of global executives are of the opinion that blockchain technology is all hype, as doubts about its industrial applicability increase due to the recent collapse of the Blockchain Insurance Industry Initiative(B3i), says GlobalDataGlobalData’s Q2 2022 Emerging Technology Trends Survey (sample size: 352) reveals that out of seven upcoming but leading technologies, blockchain was most widely believed to lack any real industry use-cases by business executives. The company notes that the B3i episode leaves a question mark hanging over for the technology’s role in the industry.
Benjamin Hatton, Insurance Analyst at GlobalData, comments “Whilst blockchain and distributed ledger technology is certainly complex, uses have emerged in the insurance industry, notably in parametric insurance for natural disasters and catastrophes. B3i consisted of many key players in the (re)insurance industry. That none of them seem to have the impetus to revive the project suggests many do not see a viable endgame to the initiative.”
A further 20.7% of global executives responded “don’t know” when asked about the hype and substance of blockchain. This suggests that there is a significant level of misunderstanding regarding the technology. Moreover, respondents were also asked how their sentiment towards the seven technologies had changed in the past year, with 32.4% of respondents indicating that their sentiment towards blockchain is more negative than it was compared to the year before–the highest of all technologies in question.
Hatton continues “Blockchain has often been a poorly defined and misunderstood topic. It’s association with the world of cryptocurrencies and digital assets has left it with a poor reputation among many people.”
After a few years of hype around 2019 and 2020, negative sentiment appears to be creeping back in for blockchain, which is likely also driven by the collapse of cryptocurrency values in 2022.
Hatton concludes: “Although this may set back the development and implementation of blockchain in insurance, use cases will remain and continue emerging in the future. As regulation is gradually introduced and strengthened within the space, some firms may get the confidence in the technology they need to reconsider the power of blockchain.”
GlobalData Trends(149 articles)
B3i Trends(6 articles)
Blockchain Trends(184 mentions in Insurance Newslink)