Our digital world is changing at a rapid pace. It is no doubt that technology now impacts our daily life and other aspects with the ability to improve them significantly. The business, on the other hand, also know how important it is to embrace technology and evolve with it. Blockchain and insurance companies
Meet blockchain, a game changer that will impact almost every sector out there. Blockchain impact on insurance has also been acknowledged by industry leaders including the World Economic Forums. Their report suggests that by 2027, 10% of the GDP will be from blockchain itself.
Insurance is one of those sectors, that can gain from the use of blockchain. In this article, we will be exploring what blockchain insurance has to give to us. Insurance has always been a big task for anyone going through a problem, and we hope that blockchain insurance can change the whole landscape.
Many blockchain insurance are working towards a better insurance experience for the end user and the businesses who handle the insurance for people. Few of the blockchain insurance are focusing on an entirely novel approach, whereas others are trying to augment the already present insurance processes and improve them in the whole process.
Also, to get a better grasp of the blockchain insurance policy, we need to be going through the blockchain insurance use cases. By going through these blockchain insurance use cases, you will get a better idea of how blockchain insurance are trying to solve the problem of the blockchain insurance industry.
Blockchain, or distributed ledger technology, uses advanced cryptographic techniques to create a secure ledger of information that prevents the unauthorized modification, addition or removal of data. Use of blockchain offers significant advantages over other technologies, key among them is data security and the creation of a clear audit trail. As blockchain systems are immutable and do not require oversight by a central authority, use of a distributed ledger also opens up new options for secure collaboration between competitors by removing the need for trust between third party organizations.
Though blockchain’s capabilities are well-established, insurers are still investigating blockchain’s potential applications within their unique organizations, as well as across the industry at large. Many are starting to recognise that blockchain has significant potential to transform the insurance value chain, creating a more secure, efficient, cost-effective, and customer-friendly experience.
Many companies are already experimenting with radical new products for the ever-evolving demands of the insurance customer in the digital age. But blockchain isn’t just for companies; incumbent insurers, as well as reinsurers, are leveraging the technology to improve outcomes for both customer and carrier.
Insurers can unlock trapped value by combining blockchain with other technologies, too. Accenture has developed a blockchain-based proof of concept that leverages data from smart sensors to enable smart-vineyard insurance.
Collaboration and partnerships in new ecosystems will be key to leveraging new technologies for the greatest benefit. Blockchain has the potential to lift and carry the entire insurance industry to a new level. But each organization will have to decide for itself what role it should and can play in this new network of possibilities.
Blockchain can enable insurers to transform their business processes to unlock trapped value, reduce duplicative efforts and process inefficiencies, mitigate fraud and loss, and much more.
And that’s just the beginning: The promise and implications of blockchain are so profound that the technology could revolutionize business practices as we know them. Insurers would be wise to embrace the technology today—or risk falling behind the curve in the near future.