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Insurance

Why Blockchain for Insurance?

Insurers are looking for a variety of processes from transactions.
Overall, blockchain offers the following transformational opportunities for insurance carriers:
 

  • Explore the viability of distributed ledger technology to automate claims and better serve clients through faster, more convenient and secure services
  • Improve data accuracy and consistency by enabling an environment where shared data cannot be deleted or changed without the consent of other parties
  • Encrypt and channel information with improved data security to ensure each party can only access and view what it should

How Blockchain Works in Insurance

The blockchain can connect any number of entities on a single, shared, immutable ledger, replacing disparate systems and improving security, traceability and efficiency.

Use Case 1: Logistics Insurance

Now

Carriers insure goods that must travel through a complex chain of logistics providers and warehouses to get from point A to B, and there is often no unified view for consumers and merchants to track their orders. When a package gets lost, submitting an insurance claim is time-consuming, and payments take time to process, delaying re-ordering.

With Blockchain

Shipment data is tracked on a blockchain-based distributed ledger that updates parties with relevant information as goods make their way from location to location. When a package gets lost, blockchain transaction history can be viewed to verify what happened, and carriers can more easily determine accountability and issue payments, if necessary.

Use Case 2: Claims Management

Now

The claims management process involves multiple communication channels and many manual steps to manage information and paperwork. Due to the large volume of claims and their associated complexities, carriers are searching for a solution to automate the process of identifying fraudulent claims and reduce investigative cycle time.

With Blockchain

Using a blockchain-based platform simplifies many business processes around claims, eliminating manual steps in claims registration and assessment, payment processing, closure and more. Storing claims data on a blockchain shared between carriers can also help automate claims management and detect fraudulent claims based on identified patterns and information.

Use Case 3: Reinsurance/Billing

Now

The transmission and reconciliation of funds internally between lines of business or to the reinsurer market is still a largely paper-based, manual process (cut check, deposit funds, etc.). Premium reconciliation and audits take large amounts of time, effort and cost.

With Blockchain

Blockchain can be utilized for the logging and transmission of funds internally as well as externally with reinsurers, resulting in a faster process without the need for manual paperwork. This new framework allows for real-time tracking, secure transmission and an audit-friendly method to promote premium awareness for carriers.

Use Case 4: Travel Insurance

Now

Travel insurance claims require the collection of authoritative documentation from multiple parties to prove the claim is necessary. If denied, the insured must manually process their claim from scratch.

With Blockchain

A blockchain-based solution for travel insurance claims digitizes the process and eliminates paperwork, removing the validation and authentication steps of the submission process since authoritative sources of data are built-in. Claims are submitted with or without the insured’s involvement, then processed and paid out immediately.

Have a Use Case Not Mentioned Above?

If the blockchain use case you had in mind isn’t listed here, please let us know and we’ll explore its potential for your enterprise with you!

Learn More about the Benefits of Blockchain in Insurance

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