“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”
Amara’s Law may apply to decentralised finance (DeFi) and blockchain technologies, which offer the potential to improve efficiency, enable new business models and open up new opportunities in insurance. They may also enhance the accessibility, affordability and attractiveness of insurance – making insurance more inclusive – and could address issues around trust, operational cost and transparency. So far, however, these potential benefits have not materialised, and enthusiasm about and confidence in investing in DeFi/blockchain insurance have suffered from recent crypto failures.
This Geneva Association report evaluates the current state of DeFi and blockchain applications in insurance, as well as their impact on operational efficiency and financial inclusion. This webinar presented the report’s key messages and convened leading experts to discuss the developments needed for insurers to realise the technologies’ full benefits.