Web: Insurance on the Blockchain

July 2018 by: From The Web

From better risk visibility & faster claims processing to collectively fighting fraud, blockchain can provide comprehensive benefits across the insurance value chain.


Blockchain implementation can enormously accelerate insurance transformation and steer the industry towards digital collaboration and interoperability. Permissioned blockchains deployed in insurance consortia yield comprehensive industry benefits across the value chain in three categories: (1) preventing fraud, (2) championing interoperability in multi-party processes and (3) facilitating consumer trust and ease of auditing through data transparency and immutability.


Introduction


Insurance is a multi-trillion dollar industry, but the workflow in brokering trust, insuring parties, and reinsuring risk items today remains an expensive, slow, and fraud-prone process.


Although the digital age has inevitably brought about technological innovations, the centuries-old insurance industry seems to still be heavily drowning in paperwork and redundant manual procedures. Layered with the required collaboration from a multitude of parties needed to execute certain industry tasks like enforcing policies, processing claims, underwriting contract items, or drawing up new contracts, the insurance process remains far from transparent, coordinated, or secure. Each new party engaged in a particular insurance transaction?—?be it insurer, reinsurer, broker, consumer, or vendor?—?adds a compounding set of paperwork and potential for fraud, cyber attack, lost data, misinterpretation, and human error.


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