The potential of Blockchain in the insurance industry is based on optimization and efficiency of the entire insurance process.
In reshaping the insurance industry for the better, Blockchain is changing the process from the ground up by allowing automation when it comes to the transfer of value, Blockchain’s immutable record capabilities and autonomous transfer process means a much improved rate of efficiency across the value chain of insurance.
In the case of end-user roles on insurance, users such as the insurers themselves and brokers are able to expedite the process of handling, processing and recording data in real-time. For the business, simultaneous transfers of assets or enactment of policy can happen without the need for costly processes that have become too dependent on the roles of verifiers and information keepers.
When coupled with other technologies such as the real-time data gathering of devices that are Internet of Things (IoT) enabled, insurance becomes a string of automated response. Take on the example of home insurance that guarantee asset protection for home damages. When a faulty water system has erupted due to unregulated pressure, sensors dedicated to the home’s maintenance and monitoring system will gather and transmit data to a tie-in home insurance program.
In using the data, the home insurance policy that is stored in a smart contract checks the provision of the conditions are met for an execution of the policy coverage. For the homeowner, they will not need the statement of a repairman or a solicitor to claim their insurance coverage. For the insurer of the home insurance, the policies stored in the smart contract are self-executing and will notify the system administrators that the policy of Homeowner Fred can now be claimed. This saves a lot of time and resource from the insurance claim process in terms of paperwork and knowledge investigation.
Insurance has always been about customer-centric and when it comes to Blockchain’s digital records and smart contracts, the focus is on the consumer who has availed of an insurance coverage for his or her health, their assets or properties. When claiming insurance, gone will be the costly process of paperwork and evidence gathering to merit a claim. For insurers, the risk of fraud and tedious deep know your customers (KYC) processes will give way to a secured and more efficient process.
When customers are given the proposition of being at the centre and ownership of their policy, the insurance industry will see a market that is insurance hungry where personalized insurance programs will be less than a deviation but a standardized market thanks to the data profiles that will be stored and processed under a Blockchain enabled insurance system.
Optimization of data and process will take over the ageing enterprise resource planning systems employed by insurance organizations as Blockchain will pave the way for a much leaner and more profitable industry in the near future.
DynaQuest Technology Services draws upon decades of experience of harnessing information technology in working with insurance companies. With our dedication to putting to enterprise use of emerging technologies such as Blockchain, we help insurance companies manage and maintain the transition to Blockchain.
DynaQuest Technology Services
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