As customers demand modern business practices & faster settlements, insurance providers must adopt new technologies to survive.
Imagine an immutable database that contains the policy information of every driver on the road today. When a wreck occurs, a police report is loaded to that database, repair estimates follow shortly after, and payments are distributed via this automated system.
Outdated with Siloed Data
Dijets can help insurance providers with designing & deploying blockchain-based insurance products across an array of usecases including but not limited to Flood insurance, Crop insurance, Collateral insurance, Flight insurance etc.
Traditionally, the insurance industry has been slow to change. Paperwork, phone calls, and a hassle to get claims approved met the consumer each time an event occurred. But consumers are demanding more convenience from an industry they have to interact with out of necessity. And insurance companies need to adapt.
Blockchain technology is a way for companies to eliminate overhead, automate claim processing and payments, and protect data. It is also a way for consumers to cut insurance companies out of the industry altogether, forming contract-bound communities that add funds to a pool and extract money when the group approves a claim.
Consumers in todays digital world demand greater convenience and product customisation with an even greater transparency with emphasis on demonstrating data handling practises. If a consumer can seamlessly file auto, property, and health insurance claims and get paid quickly it builds trust with the industry. The immutable ledger also ensures consumer data is kept private until safely shared when a policy is changed or a new policy starts.
The following are some of the many immediate benefits that scalable Blockchain Technology can bring to insurance providers:
- Automated Claims Processing: Smart contracts attach transactions to a predetermined event. In the insurance sector, if claims are approved and payments are scheduled automatically, an entire process once handled on paper is digitized and made more efficient.
- Fraud Detection: Verified identities attached to an immutable record make it possible for an insurance company to validate the claim history of an individual. This digital reputation helps reject bad claims. Community governance, sharing of records between institutions, adds another level of accountability.
- Micropayments: A consortium allows for more detailed data, as policies, claims, and payments are integrated and shared. This means insurance companies have the tools to develop more innovative products, like micro-policies that pay out on certain events. For example, imagine a farmer being paid instantly based on a weather event.
- Improve Customer Experience: Most often than not, something bad has usually occurred when a customer has to call an insurance provider. That’s why a distributed system with automated transactions makes sense. Agents do less paperwork and the insured are taken care of more quickly—which drives customer retention.
- Digital Transformation As blockchain technology evolves, customers will come to expect efficiency, transparency, and automated interactions with insurers. This makes digital transformation not only an efficient business practice—but table stakes to compete in the future.
- Meeting Compliance Requirements Digital documents, claim data, and integrated policy details allow insurance companies to connect with industry regulators and scale ad hoc reporting at no additional cost. The blockchain also stores documents and records in the event of a disaster.
- Streamlining Dispute Resolution When problems arise, identifying where the breakdown occurred and which party is responsible is a lengthy, manual process. By providing a shared source of truth, blockchain makes it possible to resolve disputes quicker.