How can blockchain help insurers get the basics right?

How can blockchain help insurers get the basics right ?

Within Insurance, the claims and finance functions are high-value areas where blockchain could be beneficial, especially when you look at processes that need ongoing reconciliation with external parties. Consider how often Company A has a claim against Company B resulting in the exchange of money, typically in the form of a paper check or an electronic transaction. That could be completely automated using blockchain.

 

Presently, many insurers are applying a smart contract alongside the blockchain, which is triggered when well-defined terms and conditions are met. By setting up an insurance contract that pays out under these circumstances, an insurer can process transactions with no human intervention and greatly enhanced customer service.

 

In other words, blockchain can help deliver on the digital opportunities that insurers must get right. These opportunities aren’t glamorous but they’re important: as I’ve said before, get them right and you won’t win—but get them wrong and you will lose. Blockchain can help insurers deliver on some brilliant basics. For example:

 

Using shared loss histories to obtain data-driven insights on prospective customers for more sophisticated pricing

Supporting more efficient payments between insurers and third parties, especially during the claims process

Finally, several reinsurers have successfully used blockchain to streamline previously complex, manual processes.