Blockchain Technology and Innovation in Insurance Sector

Despite being existent for centuries, unfortunately, the Insurance industry has not yet overcome the inefficient practices and slow processes continuing from the past. The trend of paper contracts, purchase of new policies on phone calls, and many more conventional trends are still going on. In short, the insurance industry still has obstacles to overcome. It seems possible only with Blockchain technology implementation as it can provide complete accountability, transparency, and superior security assurance. These features of Blockchain technology can help insurers save time and costs of processing, and it can also improve customer satisfaction levels.

These possibilities with Blockchain have made banking and insurance industries embracing Blockchain. The insurance industry is sure that Blockchain will evolve to stay competitive, and it has the potential of streamlining processes and meeting the demands of technology-savvy customers. Blockchain platforms help insurance companies deal with current challenges and develop a transparent operations system built on trust and stability. Here, we are going to discuss various Insurance applications for Blockchain technology:

• PROPERTY AND CASUALTY INSURANCE: Property and casualty insurance includes the security of auto, commercial, and residential properties primarily. Significant manual entries in processing claims increase the possibility of human error and make the whole system considerably slower. With Blockchain, the process of ownership could be three times faster and highly cost-efficient. Use of decentralized ledger and smart contracts in the issuance of insurance policies can automate the whole process of claim settlement and payment and makes it more efficient and accurate. With smart contracts on Blockchain’s use case Insurewave, paper contracts can be saved as programmable code that enables automation of claim processes.
• HEALTH INSURANCE: The health insurance industry faces numerous challenges such as duplicated medical records, manual claim processes, and inaccurate medical records, causing inefficiencies in the operations. There exist huge scopes of improvement to make the system efficient and accurate. Blockchain facilitates the ability to secure and sharing medical records cryptographically between health providers. It helps to promote interoperability and enhancing security in the health insurance ecosystem. Blockchain enables the health insurance industry to make the process cost-efficient and improve the level of patient satisfaction. With Blockchain use case MedRec, the access of medical records can be allowed for permitted providers only.
• FRAUD DETECTION AND RISK PREVENTION: As per the figures revealed by the FBI, in the USA, health insurance frauds average more than $40 billion every year. Outdated technology and manual processing of claims open up the scope of human errors and deceptions that cause inefficiency and financial losses to the insurance industry. With Blockchain’s use case Etherisc, the insurance companies can store claims information in the form of smart contracts built on a decentralized ledger that would help communicate and identify suspicious activities.
• Reinsurance: Blockchain can enable smart contracts to secure reinsurance policies and simplify the flow of information and payments between insurers and reinsurers. Blockchain-built use case B3i allows reinsurance companies to efficiently underwriting policies and allocating capital for greater stability in the industry.

The insurance industry is dealing with massive challenges in terms of efficiency of processes and accuracy of claims. Blockchain has shown the industry’s enormous scope of benefits as benefits are for both companies and their customers. Simply availing of Blockchain Professionals services can make you helping all the benefits of Blockchain technology, either way, being an insurance customer and provider. Its major uses include Enhanced Efficiency, a higher level of trust, accurate and fast claim processing, and smart contracts for better storage and processing.