Blockchain has been a transformative platform in the world of insurance as its premise of security, optimal processes and automating otherwise cumbersome knowledge based processes have been proven to be the next phase of the industry’s continued modernization under technology. While large consortia have developed and leveraged Blockchain through use cases, the focus of Blockchain has further intensified in the diversity of the insurance market that includes medium and smaller insurance companies.
If the insurance industry will mature with Blockchain, this means that adopters must comprise not that of top-tier insurance provider as Blockchain must be adopted by smaller entities across the industry.
Blockchain is further defining old processes into optimal conditions and it is also defining the client-centric focus of the industry where collaborators such as insurance companies and their partners are able to share confidential information securely based on the platform’s decentralized structure.
As each unique insurance process gains ground with Blockchain, the process is reimagined on how to further Blockchain as a transformative technology that will go beyond 2019.
Reaching More Diverse Markets
The insurance industry is a cluster of both large and small coverage across the applications of commercial, personal and property insurance. Beyond personal insurance coverage, Blockchain is transforming the reinsurance scene by alleviating dense processes of information gathering, knowledge based decisions and reinforcing its actuation on risk trigger events. Beyond 2019, commercial insurance will also be reimagined and further be studied under the robust and yet flexible nature of Blockchain to accommodate client or organization needs.
Smart Contracts Define Participations
The greater and more in-depth the participation, the set of rules are written to accommodate the principle interest of the coverage. As a contract terms is executed when specific conditions are met, the cumbersome process of paperwork, knowledge accommodations, reconciliation and term reporting is costly in terms of resourced needed and poured in execution. The concept of Smart Contracts state automation in self-execution when its mechanism detects and actuates its coverage when conditions are met. This is a feature embedded in Blockchain insurance that will optimize the claims process with unprecedented seamlessness – thereby eliminating frictions and fissures out of the process.
Collaboration Across Markets
Blockchain is breaking boundaries across industries and when it comes to insurance, the same applies. In a market that is defined by the movement of acquisitions, sell offs and mergers, individual platforms of insurance enterprise software are in a state of silo that is built to traditionally standalone rather than to communicate with other systems.
With Blockchain, interoperability starts with key movers such as large consortium in defining an ecosystem of trustless – information on demand only framework to better manage corporate decisions that have a trickle effect into the market and client coverage. Blockchain is built with interoperability as its public nature of decentralized ledger states. However, collaboration between the market’s smaller players are needed in order to further pioneer the interoperability ecosystem of Blockchain enabled insurance that will lead to better value-driven decisions and market portfolio.
