How Blockchain Can Help Insurers

Blockchain Applications for Insurance

Blockchain can be applied in three main areas across insurance: -

  • Insurer’s internal operating model
  • Intermediary interaction

Delivering expense reduction

Insurer’s internal operating model

  • Requirement for bordereau and cash transfers between intermediaries and insurers removed.
  • Underwriting authorisation levels built into smart contracts so cannot be abused.
  • Reinsurance arrangements controlled via smart contracts and data transferred via distributed ledger technology.

New Product Models

Blockchain radically drives down the base cost of issuing a policy — US$1 or less. This allows insurers to consider new and exciting product solutions in areas such as IoT (Internet of Things), the sharing economy, micro insurance etc.

Improved cash management and investment income

Cash transfers become quicker and eventually insurers should receive all premiums directly from a customer, even in intermediated business. Intermediaries only receive their brokerage and insurers will be paid risk premiums direct.

Summary

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Blocksure

Blocksure

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