How is Blockchain Creating New Opportunities for the Insurance Industry?
Blockchain is a new technology that has the potential to revolutionize different industries. Bitcoin is undoubtedly one biggest innovation based on Blockchain, it has created a reputation for itself in the last few years. Cryptocurrency use and adoption are growing in numbers every day, to match the demand online Crypto OTC Trading Exchange is also available. Now after years of being in the news, suddenly the focus has shifted towards Blockchain technology. This new technology has the potential to significantly change fields, insurance being one. Blockchain technology will change the way how an insurance firm collects or records data, processes insurance claims and play a huge role in preventing scams. Application of Blockchain technology is still at a nascent stage of implementation but there are huge opportunities.
A Catalyst to Change Insurance Industry
Blockchain technology is slowly evolving as a catalyst that will completely change the insurance industry. The insurance industry requires cooperation and coordination of different intermediaries for processing large data sets; Blockchain technology can do wonders here. Implementation of Blockchain technology will empower the insurance firms to streamline and reduce paperwork, save costs by eradicating all lengthy processes from the system. More importantly, the technology will improve data security. Here is a deeper look at how insurance companies can be benefitted from Blockchain technology:
Fraud in the insurance sector is a common thing. Every year insurance companies suffer a huge loss because of such scams or cheats. Within this industry, fraud claims are becoming common because of a few loopholes in the system. Claim papers keep rotating from insurer desks to reinsurer to the insuree. There are plenty of dependencies from various departments, which in the long run results in creating a vacuum for cheats. Looters are making the most use of this vacuum within the insurance claim process leaving insurance firms to suffer loss. Multiple claims are made by different insurers for the same loss and there are numerous such cases taking place. Blockchain technology implementation can stop looters in the following ways:
- Blockchain technology is a distributed and decentralized system that can record all insuree data along with information of all transactions processed.
- The specialty of this new technology is that it can easily cross-check the genuineness of customers and all insurance claims initiated.
- Blockchain technology will provide a history of all claims and complete details processed for an individual.
- With all information available in one place, insurers can easily single out duplicate entries and prevent fraud.
- Another benefit of implementing Blockchain technology is that it will reduce risks associated with payments involving several currencies.
- Insurers can easily identify any suspicious or unusual behavior regarding claim processing.
Experience the Disruptive Shift in Insurance Industry
Common individuals who are willing to change or have changed healthcare insurance service provider needs to go through a lengthy and tedious data-entry process. There is also the fear of misinterpreting or loosing data in traditional paper-based insurance processes. Blockchain technology will soon bring an end to this age-old conventional system. In today’s time Blockchain is the only solution that can easily solve all the problems of the insurance industry. The new technology drives in security and efficiency helping individuals control personal information and easily get verified through the network.
Now that Blockchain technology applications are known, insurance companies have started testing different models to find out impact areas of the technology. Slowly but steadily Blockchain technology will get implemented in the industry which will make it more transparent and efficient. Presently insurance companies can start with low-risk models and finally with time can upgrade to large-scale adoption. Blockchain technology comes with the huge potential to improve trust among stakeholders and instill transparency across the whole ecosystem. Different areas of Blockchain technology are now being explored by insurance companies to move towards process-orientated, friction-free, low risk, less complicated insurance, and claim process.
Blockchain which is the underlying technology to best OTC Trading Platform will soon revolutionize the insurance sector. Every common individual will benefit from Blockchain technology in the coming days. What do you think about this new technology? Do share with us your views.