Insurance
 
Insurance is one of the industries, which will undergo a fundamental shift with the advent of Blockchain. The major benefits for Insurance are going to be improvements in customer experience, efficiency and new product creation. Transparency being one of the main characteristics of Blockchain will help in making Insurance transactions in a much safer and secure way. Smart Contracts powered by the oracles will automate the claims pay out and reduce the time taken to process claims in the advent of a natural disaster.
The implications of Blockchain for large Insurance companies will be that there would be a fundamental change in the underwriting process, the policy structure, and risk underwriting. As in other industries, the full potential of Blockchain applications will happen when Insurance companies, brokers, regulators, reinsurers and authorities will come together on a common Blockchain network.
 

Use cases:

ProcessPotential Transformation through BlockchainKey benefits
Pricing and Underwriting
  • Blockchain will enable usage-based peer-to-peer insurance and micro insurance
  • Smart Contracts will help in underwriting by taking into account external data and, peers to determine the price
Reduction of cost and increase speed for pay-outs
Claims
  • Information is passed across the network in real time for pay out of claims 
  • Smart Contracts coupled with IOT will automate claims process 
Reduction in claims administration costs 
Real-time identification of claims events
Reinsurance 
  • Blockchain will make data available for reinsurers in a restricted way.
Automating real-time data from events and easy auditability will help in designing new financial instruments

 

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