Blockchain Insurance Solutions

With its three fundamentals of trust, transparency and immutability, blockchain provides a single source of truth that can be updated in real or near-real time. This allows insurers to automate processes and build products that aren’t possible with current technologies. It also means that there’s less room for error, speeding up processes and reducing total cycle times.

As a secure and tamper-proof digital ledger, blockchains help combat fraud by creating a shared data platform where transactions and claims are recorded and stored. Insurers can use this platform to identify suspicious patterns such as duplicate processing of the same claim.

Blockchain Insurance Solutions: The Future of Risk Management

In addition, Blockchain Insurance Solutions can improve data security by allowing for cryptographic signatures and advanced permission settings, thus eliminating the risks of sensitive information breaches. Moreover, by enabling self-executing smart contracts, blockchains can reduce operational costs through automation and increase efficiency.

The potential for blockchain applications in the insurance industry is endless. In addition to improving data security and introducing transparency, blockchains can simplify claims processes and financial transactions and enable insurers to offer competitive pricing, especially in the underinsured market.

For example, a blockchain-based solution could enable insurance companies to securely synthesise extensive externally sourced data with customers’ own data points (eg driving or medical history) for underwriting purposes. This would significantly reduce customer non-disclosure and fraudulent applications, helping insurers avoid mispricing and exposing them to risk. Similarly, smart contract-based policies could automatically compensate policyholders when certain pre-defined conditions are met, removing friction from the claims process.…