Blockchain in insurance
- 2. Introduction Each and every technology brings a new change over in any kind of businesses or industries . When we look at the list of industries that are disturped due to implementation of technologies , Insurance Industry stands first in the list . There may be many technologies that transforms the insurance industry , but Blockchain Technology proves to make notable transformation in Insurance Industry . Here let us look over the transformation of Insurance industry by Blockchain and how blockchain is helping insurance industry to face the challenges
- 3. Insurance and Types Insurance is nothing but a protection from uncertain financial losses . To hedge against the risk of uncertain losses , a form of risk management is practiced which is known as Insurance Policy . A firm or an individual who provides insurance is known as insurer. A person/group who buys insurance is called as insured/ policy holder. There are many types of insurance , but basically an individual needs the following insurance like , 1. Health Insurance - An insurance policy which ensures you to get cashless treatment / expense reimbursement, in case of health issues .
- 4. Insurance and Types 2 . Auto Insurance - An insurance purchased by automobile owners to mitigate costs associated with getting into an vehicle accident . 3 . Title Insurance - An insurance which protects insureds against claims for past occurrences. 4 . Life Insurance - An insurance in which the insurer promises to pay a beneficiary amount money on the death of policy holder. And so on.
- 5. Challenges In Insurance Industry The major challenges that insurance sectors faces in recent days are as follows : 1 . The limited growth in markets for insurance sectors . 2 . Involvement of fraudulent claims activities . 3 .Occurance of third party payments and transactions . 4 . Difficulties in handling vast amounts of data . There are lot more challenges in insurance sectors and the above mentioned major challenges can be overcomed by Blockchain Technology
- 6. Blockchain - A key to Escape out of Challenges Blockchain in insurance sector can help to kick out most of the issues in insurance sectors and make it work effectively. Security : As blockchain uses public ledger which can resist duplicate transactions by monitoring each transactions. With the decentralized digital system , blockchain can verify the authentication of customers, policies and transactions by maintaining historical records.It creates a complexity for hackers to steal data .
- 7. Blockchain - A key to Escape out of Challenges Smart Contracts : The personalized smart contracts in insurance industry replaces physical paper documents and activities by smart contracts that connects real-time records. This easily initiate claims and payments with high accuracy which inturns reduces money and time. Third - Party Transaction : Blockchain reduces the amount of third-party transactions , claims and administrative costs . Blockchain helps for automated verification of claims and payment details from third party.
- 8. Insurance Sectors that uses Blockchain Now , let us have a look at some insurance companies that adopts the use of blockchain which makes them survive stronger . 1 . Kasko2Go - An automotive insurance company uses DLT ( Blockchain ) for eliminating most of the red tape that surrounds auto insurance. 2 . fidentiaX - Life insurance company using blockchain to streamline their insurance procedure. There are many other insurance firms which uses blockchain technology and BI for facing complexities and issues .
- 9. Future Scope Everyone will expect for a more open and a transparent Insurance Sector . This can be made possible with the use of blockchain technology . This shows that Blockchain holds the key to the future of the Insurance Industry . Let us hope the transformation of all insurance companies as secured and fast working with the use of blockchain technology.
- 10. How Bitdeal can Support ? Bitdeal - Best Blockchain Development Company works on blockchain development for all industries at affordable costs . We develop blockchain for any kind of insurance companies with unique features and functionalities . Our experts can dedicatedly develop and deploy you the best blockchain for your insurance firm on time . To know about blockchain in Insurance Sector in detail , just have a look at this blog : How Blockchain Technology Renovates The Insurance Sectors ?