Blockchain, a catalyst for new opportunities in the insurance sector

ByKatrin Kunze

Insurance industry plays an undeniable role in every human life. Be it health, property or any risky insurance; everyone has their covers and claims. The workforce and processing of the insurance sector can be enriched with blockchain technology. 

Many insurance companies are either already adopted or planning to pilot blockchain technology across their business units. This is mainly due to the level of trust, transparency, and immutability that blockchain provides is impeccable. 

Now let us understand how blockchain is transforming the existing process that is carried out in the insurance sector.

How would the blockchain insurance sector work?

Even though the insurance sector is certain in our lives, it lacks the evolutions of technologies. Implementing blockchain in insurance industry can fast forward the growth curve to next-generation. 

Let’s discover blockchain insurance’s process flow!

Digitized Documentation

  • Blockchain insurance platforms can devoid physical documentation and digitize the records which could save huge papers. 
  • Digitization of records can avoid damages from calamities and loss of data. 

Automated claim approvals

  • Insurance industries face a great hassle on processing huge claims at the time of calamities. In these scenarios, blockchain-based insurance platforms can process claims rapidly with community governance. 

Scheduled payments

  • Insurance premiums, claim approvals, and other payment processes in the industry can be scheduled with smart contract protocols. 
  • Blockchain insurance channel supports P2P transactions, and hence the process would be swift. 

Devoid of scams

  • Insurance sector needs to verify the client’s reputations and claims in a legitimate manner. Blockchain insurance platforms can avoid risky claim scams to a greater extent with community governance heading through consensus goals. 

Integrated Verticals

  • Every person would have distinct insurance premiums for automobile, health and properties. With blockchain insurance applications, a person’s entire insurance policies can be integrated and managed efficiently.  

Takeaway!

Blockchain insurance platform features such as integrity, transparency, decentralization, P2P transactions, devoid of intermediaries, scams can enhance the claim processing and consumer experience in our future generations!