Blockchain and Distributed Ledger Technology: Insurance Applications, Legal Developments, and Cybersecurity Considerations

Ken Goldstein

Volume 27

Issue 2

PUBLISHED

Spring 2021

Abstract

Blockchain technology is experiencing breakout growth globally. Companies from diverse industry sectors, including insurance, are tapping into its decentralized distributed ledger capability in order to efficiently and transparently transact business, track anything of value, and operate in a more secure environment. While blockchain is being creatively implemented, however, there are also important legal (including legislative) and cybersecurity considerations to account for as a part of the decision-making process. This paper will start by providing an overview of blockchain technology, including the ability to use it as a decentralized distributed ledger. It will then pivot to a variety of blockchain applications either disrupting or supporting the insurance industry. Thereafter, it will explore blockchain-related legal issues along with Connecticut-based legislative developments in the insurance capital of the world. Lastly, the paper will reflect upon cybersecurity strengths, weaknesses, and best practices associated with blockchain.