INSCOIN: ENHANCING THE INSURANCE INDUSTRY VIA BLOCKCHAIN TECHNOLOGY

3 min readAug 7, 2018

As important and useful insurance industry is, it does not exist without its challenges like insurance fraud, especially in this age where folks lie for financial gain. Insurance fraud by consumers falls into two categories. The first is “opportunistic fraud,” or “soft fraud,” in which an insured person misrepresents important facts or exaggerates amounts in an insurance claim. The other type is “hard fraud,” in which an insured person intentionally creates a loss in order to make a claim. Fraudulent schemes involving automobile insurance may simply consist of exaggerating the extent of injuries or property damage sustained in a car accident. More complicated schemes may involve making claims for accidents that never actually occurred, as well as staging real automobile accidents.

The purpose of most life insurance policies is to provide a benefit to one or more beneficiaries, such as children or other dependents, in the event of the insured person’s death. Life insurance premiums and an insurer’s willingness to issue a policy may vary depending on the insured person’s health and other risk factors. Withholding material information relevant to these areas may constitute life insurance fraud. The most common cases of life insurance fraud, however, are much more dramatic, involving faking a person’s death or causing a person’s death for the insurance payment. Issues of Insurance fraud that plagued the industry were caused by deteriorate relationship between the insured person and the organization. This call for a drastic relational renewal birthed an innovative idea “InsCoin for Knox Project”.

INSCOIN SOLUTION

The KNOX project will be the first insurance company that combines the real world with the digital one using Blockchain technology, creating the most efficient and advanced structure in the sector, to find a solution to the problem of certification and anti-forgery of insurance policies.

Blockchain is a technological innovation cryptographically verifiably designed to secured global ledger (smart contracts) that can lead to new types of incentive structures, it has succeeded in cutting across so many economic sectors and industries, disrupting so many organizational frameworks and setting things in order.

Inscoin’s System Structure

Only blockchain will make inscoin’s innovation possible, in principle, to switch to a model of payment for targeted actions. Blockchain allows for the implementation of tracking of target actions and saving them in a database transparent for all clients.