What is Blockchain Technology
The future of blockchain technology is seen as the biggest picture of the fourth industrial revolution and a potential disruptor for some organizations and businesses including the insurance industry. Although this technology is still in its early stages it has just shown what it can do streamline printed materials increase information security and save organizations costs by eliminating boring case forms.
Summary of Blockchain Technology
Blockchain is a large-scale decentralized advanced record that is reliably up-to-date and holds a record of a significant number of exchanges that have taken place. Blockchain systems are meant to record anything from physical resources to electronic money and are openly accessible to all gatherings involved.
After the verification process, the transaction block is time-stamped and added to the blockchain network in a direct sequential request. The next block is then appended to the previous blocks, creating a chain of blocks containing the data of every transaction made in the history of that blockchain.
Blockchain has been familiar to most through Bitcoin however its applications go beyond the simple recording of electronic cash. It can also enable inventive and challenging changes in industries other than finance, such as the insurance business model. In addition to recording electronic cash and financial transactions this technology can become part of insurance and healthcare projects.
What is Insurance?
What is Insurance and how is working a way of protecting against the loss of money. It is a type of risk management that is mainly used to support against the risk of unexpected misfortune.
The insured can report an accident or insured event to a broker and forward it with the required data to insurance specialists namely the insurer or reinsurer. The claimed accommodation is confirmed by the insured with a receipt.
From this point the claims agent can request additional data for the claim through an external source. After this step if each of the conditions are met the claim is confirmed and payment is initiated through the insurer’s claims agent. Insurance is exposed for various fraudulent schemes. From sharing an insurance plan after a divorce to masking medical diagnoses.
What is Process in Blockchain
The insurance company consistently manages the various procedures that include the insurance contract to be signed. Processes can be anything from obtaining a policy evaluating a customer making a claim or managing a fraudulent policy.
Because blockchain technology deals with smart contracts insurance specialists say the technology can change the way insurance companies deal with customers. Insurance depends on a lot of data similar to various industries blockchain may end up empowering all or most of the data-related transactions in this industry through a smart contract.
Insurance contracts are unpredictable and difficult to understand so a smart contract can increase productivity in the insurance compliance chain wherever time effort or money is spent on confirming information before preparing transactions.