The insurance industry is typically averse to taking risks and embracing new technology. However, Zac Townsend, the CEO of Protocol Ventures, sees insurtech, blockchain, and digital assets as synergistic with traditional insurance products.
Tappening Magazine in an article entitled “Bitcoin and Life Insurance: CEO Zac Townsend’s Unique Perspective” recently spoke to Zac Townsend and discussed how Bitcoin is being used to support financial services companies and life insurers.
One of the first things Townsend touched on was the importance of digitization for insurance companies. As he put it, “Insurance is no longer a paper-based industry, and that’s a really important change.” Despite significant financial investments in infrastructure, many insurers are still lagging in creating digital capabilities. This is why Zac is focusing on helping insurers get up to speed in the technological revolution.
With the use of Bitcoin, Townsend sees distinct advantages for insurance companies. The technology makes it easier to execute agreements in complex exchanges, like managing a cohort of life insurance policies. He offers insights into how blockchain and Bitcoin can help streamline such processes.
What makes Townsend’s perspective unique is his view on how Bitcoin can enhance customer privacy. Townsend discusses how existing customer data in life insurance policies is spread across a large number of custodians, making it difficult to protect customers from identity theft. Bitcoin can provide a secure layer where customer data can be safely stored in a secure and immutable manner, protecting the data from bad actors and promoting customer privacy.
Overall, Townsend’s perspective on how Bitcoin and blockchain can be used to support financial services and life insurers is an interesting one. His views on digitization, data privacy, and financial safety are likely to become increasingly relevant in the coming years.