As noted by the founder of Insure Blocks, a great educational resource for Blockchain in the insurance industry[1], Walid Al Saqqaf believes that Blockchain technology will become the foundational layer for a new way of doing insurance business.
10 Ways Blockchain Is Changing The Insurance Industry
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Documentation Security
Ancillary documents are what you’ll need, in order to know what insured risk is assigned to whatever it is you have. And the best way to save such highly classified documents these days is through the use of Blockchain, which ensures that every reference to contract documents is consistent and would remove the need for participants to check the same file on different occasions. To security!
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Claims Management
Normally, claims management is often delayed, and only the lead underwriter with his/her immediate underwriter, are often kept updated about the claims. However, Blockchain has now brought a system where one can create and incorporating all documents in the claims process, which will be available to all underwriters, the client’s broker and the claim’s broker.
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Proof of Insurance
With the introduction of Blockchain in the insurance industry, one can now afford to link the insurance of an aircraft to it, distributed to a number of trusted insurers round the world, and then provided with an instantaneous confirmation of insurance by all the airport that has a link to a specific insurer.
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Managing Policies for Multinational Clients
Through the use of Blockchain, people can now manage policies for multinational clients by recording the overall contract and splitting it country by country. And this helps in providing an intern certainty, to the client and to external stakeholders.
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Inter-Company Accounting Reconciliation
Trust is a key factor before two or more companies can decide to work together financially. And that’s why today, a company could make gross payments that will be reflected in a Blockchain for all the companies to see, thus creating an atmosphere of trust for future accounting reconciliation against.
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Managing Global Health Policy
Presently, health Blockchain insurance companies[2] do use Blockchain, to place individual information in an encrypted form with keys available only to the individual, and escrow. And this has since taken health insurance to a whole new level.
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Bail Bond
Today, some insurance companies prefer recording their bail bond in a Blockchain, rather than in paper because Blockchain can be linked directly to payment of the claim and canceled automatically.
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Tracking
Blockchain has been utilized by a few insurance companies in the aspect of tracking things like policies, imposing operational limits on policyholders, and so on.
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Encryption
Blockchain has over the years served as the main source of security for personal data’s in insurance companies. This is because an encrypted file is the most secure file.
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Managing Portfolios
Especially in wholesale insurance companies, Blockchain is used to manage the portfolio of retailers.
In a nutshell, these Blockchain insurance use cases[3] have clearly affirmed that it is certainly the future of the insurance industry.
