Blockchain applications in insurance industries
wht is Blockchain: Blockchain technology solves a issue for untrusted parties to reach consensus on a common digital place. A common digital history is important because digital assets and transactions are in theory can be easily scammed/faked and/or duplicated. Blockchain solves this issue without using trusted intermediary.
why insurance? and why blockchain?
As demand on insurance is increased over the years ,The insurance sectore became competitive Therefore, many insurers are looking for new ways to reduce the risk, develop new premiums and provide better client service in the tightly regulated on-demand economy.
Blockchain technology was always foresight of the insurance industry. Blockchain’s ability to peer2peer,Immutability,Enhanced Security and store information has reshaped the way businesses process digital transactions.
Let’s take a automobile insurance coverage company to demonestrate the power and use of Blockchain
Let’s say they placed loads of clever sensors to your car for accidents. In Internet of Things (IoT) they could detect and get details through sensors when u get in an accident… but there is a process that has to be handled by a claim call
This process involves like possibly 20 extra insurance groups involved in this … Then there are other groups involved like collision repair… let’s say possible insurance groups involved are around 200. They ought to make their blockchain with usage of a blockchain as a service provided by Elastos, Skycoin or their personal token and feature the 2 hundred organizations in their network ofnodes. They don’t need trustless transactions due to the fact they already do business and have those trusted relationships but they can make the regulations or rules of consensus so that new organizations / companies that get added to the web of trust have to agree and act by these rules set or not be whitelisted or taken out of the web of trust automatically. So it automatically removes who playing against the web of trust or bad actors.
With the blockchain, we are able to record and store all transactions on each coverage in real-time. A clever settlement will depend on this statistics to:
Prevent frauds, detect errors, and
Assess information quick, efficiently and efficiently.
And when you consider that we are coping with the blockchain — the records recorded is completely unfastened from manipulation or tampering, stopping any possibility of coverage fraud. This logically results in the following use case:
Fraud detection (almost 54% of insurers consider that the foremost danger to their enterprise is coverage fraud)
Significantly faster claims processing (on the grounds that all facts might be available in a single vicinity)
Smoother medical health insurance (Via a synchronized repository of information in one location)
Even peer coverage! (Users can create trust-less coverage pools for themselves)
why future is full blockchain?
One aspect that makes human beings scare of having internet of things(IOT) is that similar to anything else gadgets can effortlessly be hacked when connected to web. You could do so remotely… but if things run with blockchain technology …its not so easy. Much more secure than any older systems it is nearly impossible to compromise a whole system. You would have to go out and find the device and compromise the one device.
Everyone know future is IOT .Iot without blockchain is kinda lame