Blockchain Adoption in the Insurance Industry — Hometown Station | KHTS FM 98.1 & AM 1220 — Santa Clarita Radio
Decentralization is a powerful idea that gives power back to people where it belongs: in their own hands instead of being controlled by governments or concentrated among large corporations. Blockchain technology is one of the many examples that show how decentralization can benefit us all.
Blockchain has gone through a few iterations in the financial industry, proving to be powerful tools that bring real benefits to businesses and consumers. In addition, blockchain technology has been introduced to advanced third-party insurance products and claims processing. If you are interested in Bitcoin, you can check Bitcoin and Fiat Money.
Many companies have begun experimenting with different levels of transparency in insurance transactions, particularly around claims handling, at a time when many industries are under heavy scrutiny for fraud and abuse. Some companies have found success in their tests, but work is still required before we see widespread use of this new technology. Let’s discuss the use of blockchain technology in the insurance industry.
Towards the development or introduction of compressive health records:
The blockchain will allow anyone to develop and implement a compact health record. It will be especially beneficial for those with chronic or terminal illnesses that are difficult to treat or manage because their illness is not easily understood or categorized. In addition, the use of the blockchain will allow individuals in need of healthcare to share their data across all providers quickly and securely.
To help reduce fraud in the processing of insurance claims:
With the decentralization of implementing a blockchain into an insurance company’s infrastructure, it would be difficult for misconduct to go unnoticed and reprimanded. Unfortunately, today fraud is rampant in many industries and there are few natural ways to combat it because most of these activities have become decentralized.
To cut out the middleman:
Blockchain technology is used to track assets that are sent from one place to another. The blockchain will be able to store an overview of quality assurance, processing and everything in between that takes place throughout the shipment of an item. As a result, it can provide many companies with a more efficient way of doing business and cut intermediary fees.
Since the beginning of insurance, fraud has been a problem that has plagued insurance companies around the world. But with the introduction of blockchain technology and smart contracts, it will be almost impossible for fraudulent activities.
Improve Supplier Directory Accuracy:
Today’s supplier catalog is a huge database of names, contact information and physical addresses. The problem businesses face when looking for a contact or an address is that people leave their information on websites, email, social media and unsecured databases where anyone can easily access it.
The blockchain will allow for a more secure ledger that provides safe and easy access to contact information, addresses and more from each company which will help businesses run their business in much faster/more efficient ways. Since the introduction of blockchain technology in healthcare, more research has been conducted to understand how the industry can use it to improve patient care and outcomes.
Simplify the application process by making it more client-centric:
The introduction of blockchain technology will simplify the application process by making it more client-centric. This technology will reform the marketplace to ensure a better fit between the applicant and their policy. The companies that integrate this new blockchain technology will likely benefit from an improved reputation, a decrease in customer churn and an increase in customer acquisition.
Implementing a blockchain ledger system will allow real-time sharing of information between insurance companies globally instead of relying on intermediary organizations to relay information that can take days or weeks for the information to be available or accurate.
Isolate a consumer relationship with insurance companies:
The blockchain can be applied to the insurance industry by allowing a greater degree of autonomous interaction between insurance companies and consumers without the intervention of third parties. This interaction will allow isolation of a consumer’s relationship with an insurance company, thereby eliminating issues related to data protection and ownership.
In return, this will lead to improved efficiency in the processing of payments, fraud detection and claims processing.
Provide a basis for research initiatives on alternative regulatory models:
The introduction of blockchain technology may provide a basis for regulatory agencies such as the SEC or the Financial Industry Regulatory Authority (FINRA) to further research alternative regulatory models. In the past, regulatory agencies have been reluctant to research alternative models and findings because it may be seen as against a company’s or an industry’s interests. As a result, blockchain technology can facilitate private and public investment in firms engaged in high-risk activities.
A peer-to-peer platform for distributed insurance:
The peer-to-peer platform is a system where two or more parties can trade directly with each other with the help of an intermediary, which provides trust, privacy and equivalence of contractual rights, and it will improve the productivity of this industry to an overall extent.
