Insurance companies have recently begun embracing cryptocurrency. However, it would seem that European insurance companies are more heavily invested than their American counterparts.
According to recently published reports, European companies are far more enthusiastic towards blockchain technology compared to American ones.
What the Research Says
S&P Global Market Intelligence carried out a study of the reported earnings of prominent insurance companies.
The study focused not only on their earnings but also on discussions made that focused on cryptocurrency. After the results were analyzed, the companies that had discussions regarding cryptocurrencies were divided by location.
At the end of the day, 15 of the companies with these discussions were in Europe with nine in North America and another nine in Asia.
While insurance companies have embraced cryptocurrency, other companies have not been that enthusiastic. However, there are aspects of crypto that banks and other financial institutions have been willing to explore. For example, a number of them have looked into blockchain technology to improve on their administrative systems.
According to the report, blockchain boosters should seek opportunities outside the U.S if they are looking for insurance companies that are interested in cryptocurrency.
Some European companies were highlighted in the report.
What the Companies are Doing
The report highlighted the specific efforts some companies have made towards cryptocurrency.
Axa, for example, offers flight insurance that incorporates blockchain technology by writing insurance contacts into a blockchain ledger powered by Ethereum.
Allianz, a German insurance company, has plans to incorporate blockchain technology into captive insurance programmes and catastrophe-insurance.
B3i, another European organization of 15 insurance companies is also working towards blockchain-backed property insurance.
An Eye on China
While Europe as a whole is gaining a lot of attention as a hub for insurance companies that are investing in cryptocurrency, there is also some buzz being generated in China, particular for a specific company.
Ping An, a substantial Chinese insurance firm has gained a lot of attention for its heavy use of cryptocurrency since as far back ad 2016.
According to the report:
“Ping An considers blockchain one of its five core technologies, as executives mentioned during an investor day in November 2017… one of its main initiatives was the creation of a blockchain-as-a-service platform, which provides services to small- and medium-sized enterprises that want access to the latest technology.”
Companies in the U.S. appear to be waiting and observing the European companies who are investing in cryptocurrency. Perhaps as more companies follow this route, US companies will become more confident using blockchain technology and cryptocurrencies.