Since last year, we have seen a huge growth in the popularity of bitcoin and other cryptocurrencies. Despite the recognition that the currency has gained recently, one of the biggest challenges has been the adoption of these features as a bargaining chip, that is, they are actually used to pay for products and services.
The insurance market is beginning to undergo a digital revolution, but it is far from the cryptocurrency revolution. But slowly, initiatives using blockchain, the technology behind cryptocurrencies, are starting to emerge strongly in the insurance industry around the world, such as Britain's Everledger and SafeShare Global, and Germany's Etherisc.
For many analysts, blockchain will find a promising future in the insurance industry as it can promote transaction security. In addition to allowing transparency in operations and preventing information falsification and tampering, the blockchain structure also prevents duplication of spending. In addition, blockchain has been widely used in the insurance market as a framework for raising funds through ICOs. In an ICO, insurtech issues tokens to investors, just as publicly traded companies offer shares. The token may represent either the right to use an application or service, a cryptocurrency, a security, or any asset. As the asset is programmed in blockchain technology, the investor's ownership of it is certified.
The Singapore insurer PolicyPal recently raised $ 65 million in ether, the most popular cryptocurrency after bitcoin. And InsurePal, which operates in the United Kingdom, raised the equivalent of $ 68 million in 80 seconds. In addition, we are seeing growing demand for new cryptocurrency loss and theft insurance products, which are increasingly popular in the media, another interesting territory for insurers to explore in this innovation environment.