A podcast report by Coin Survey, 26 September 2018.
Among a plethora of use cases, the insurance industry, which requires the coordination and cooperation of many different intermediaries with different incentives, the true killer applications of Blockchain DLT may be brewing here.
The blockchain acts as a sales ledger. This record keeping creates a virtually incorruptible sequence of data block’s linked to one another, each having a time and date stamp.
Claims management/verification and automated payout become ideal benefits.
Claims management/verification, new product/platform development, and through smart contracts may be a digitally automated process, as compliance as programmed into them.
Transparent data sharing, record keeping, decentralization, consensus-based authentication, and smart contract-based decisioning may introduce a gentle breeze of trust and transparency into the sector.
Minimises the need for paperwork while automating the claims process.
Transparent data sharing, record keeping on Blockchain DLT, improves the data quality reduces the chances of fraud.
However, Insurance companies and startups working with blockchain technology will have to overcome significant regulatory and legal hurdles before we see anything resembling industry-wide disruption.
An insurance contract is basically complex and difficult to understand. This is due to the complex legal language.
While to want extend it will alter the insurance landscape remains an open question, we can all agree that blockchain will be a disruptor for the insurance industry.