We already wrote about using Artificial Insurance for Claims Processing in Insurance Industry. Companies are incurring huge loses because of false claims and scams that happen everyday in the industry. To overcome issues like this, insurance companies are using technologies like blockchain in their existing workflow.
Blockchain has been growing as the central repository of truth for many industries and use-cases. The insurance companies are taking advantage of blockchain as it brings transparent information about the transactions, which creates a sense of trust.
Here are three major areas where blockchain is transforming insurance industry:
Underwriting is one of the most important part of a insurance company. The department that is responsible for verifying the authenticity of the claim, and decide on how much percentage of the claim can be covered is always in need of a trustworthy repository of data.
Blockchain offers to be the central repository of truth. Using blockchain, underwriters can source data from external sources to automate some aspects of underwriting, since the data in the blockchain is trustable and is from a verified source.
Improving the claims processing methods is always on the to-do list of insurance companies. And for the user, the submitting a claims and getting it approved is yet another tedious process. The processing can take quite a while, considering the number of data points to verify and also the amount of manual effort required.
With blockchain, most of the necessary information that is required for claims verification can be processed in no-time. Since blockchain can take inputs from a variety of difference sources without tampering any information, insurers can use the data available in the blockchain to track the usage of a asset. Provenance is one major area where insurers can take advantage of blockchain.
Today, every customer is required to verifying their KYC with the insurance company. Insurers and customers waste a lot of time verifying their documents and identity. This can be reduced with a blockchain platform that can talk to other blockchain platforms to verify the identity of the user.
The records in the blockchain can be made available with the ones who has permission to view the information. All the user records are securely stored in the blockchain using secure cryptographic techniques.
If you are dealing with the insurance industry, and would like to explore if blockchain is the right technology for your particular use-case, we recommend you to run the Blockchain Business Workshop before you arrive at a concept.