The Core features of blockchain makes the technology very attractive to Insurers, because it provides an immutable and permanent record of transactions, transparently available to all authorised participants, with no intermediaries.
Here are 5 ways it will transform the Insurance Landscape;
- Smart Contracts: With the details of an Insurance contract established on the blockchain, all parties such as underwriters, reinsurers, Consumers’ and Industry ombudsman would have access to the same data sets. As claims are submitted, the Smart contract checks certain conditions have been met and only pay out the valid claims without the hassle of going back and forth searching old documents.
- Know your Customer: Currently, Insurance companies have different ways of confirming the identity of new Customers. But with the blockchain, it becomes possible for Customers to create something of a ‘digital Passport’ which can be accessed by different Service providers. This will make it possible for Insurers to cut out huge amounts of time and investment in building their own.
- Payments for global Insurers or Insurers with global ambitions, blockchain allows firms to create a global financial ledger of all operations even if they are spread across different countries.
- 10T Innovations: The latest generation of home sensors, vehicle trackers, Personal health & Fitness tools represent a golden opportunity for Insurers. Yet for 10T based Insurance to fully take off. the data needs to be stored in a tamper – Proof environment like blockchain.
- Minimising Fraud: Insured assets can be added to the blockchain using unique Identifiers such as serial numbers, so that there can be no mistaking which asset is which . This helps to reduce the amount of Insurance fraud, which is currently the scourge of the Industry. Blockchain will help Insurers carry – out Proper risk Profiling.