1. Introduction While many have predicted technologies such as big data, social media, cloud computing and artificial intelligence as the technology that would shape the next decade of business, Blockchain stand out as the most disruptive of all with disruptive processes in the various sectors of the global economy including the financial, health, insurance, manufacturing and food sectors amongst others. 1.1.
Motivation and Scope The world economic forum in 2016 (“These Are the Top 10 Emerging Technologies of 2016”) considers blockchain as one of the top ten emerging technologies. It has already gained the full attention in the financial industry with investment interest from notable players like JP Morgan , Goldman Sachs, F-Prime Capital, and Thomson Reuters etc and a prediction that two-thirds firm will implement the technology by 2021. There is a 15% current use of the technology with a prediction growth rate of about 110% by 2022. Despite these growing interest, there has been a diverse view from different global organization and government with most recent comment coming from the world bank president, Jim Yong Kim who has hailed the technology but cast doubts about the true value of bitcoin price. The head of the International Monetary Fund (IMF) also speaking during the IMF Annual meeting 2017 in London, warned financial institutions on the potential disruptive nature of cryptocurrencies (Dziembowski) owing to the lower cost of financial transaction and trust the technology provides. She had though voiced her support for the financial application of blockchain. While many believe this technology would revolutionize the technological and business world, some still hold fears as to how it would truly be implemented or maybe there could be some other technology to consider and with known cases of hackers attack with the most recent being in 2016 were about $50 million worth of digital currency was stolen from the Decentralized Autonomous Organization (DAO) project, many have questioned the security of blockchain technology.
Some have argued that the attack was a result of trying to re-centralize a decentralized technology, giving it a greater point of failure. . The goal is first to carry out a comprehensive literature review of the current insurance value chain and notable use cases of blockchain technology in this sector. While blockchain is relatively new in the industry, many hold the fear it would eliminate the middlemen sooner or later from the business process model of the insurance industry.