- Future-state process description Loss information is submitted by the insuree or smart asset (via sensors or external data sources if the asset is technologically capable), triggering an automated claim application
- For insurance policies issued via a smart contract, insurees receive feedback regarding initial coverage in real time
- Claim due diligence is automated via codified business rules within the smart contract, using information submitted by the insure
- Blockchain automatically utilizes secondary data sources to assess the claim and calculate the loss amount
- Depending on the insurance policy, a smart contract can automate the liability calculation for each carrier where a syndicate (or insurers or reinsurers) exists
- In predetermined situations, the smart contract can trigger an additional assessment of the claim in order to reach a final decision/calculation
- If the claim is approved, payment to the insuree is initiated via a smart contract
Future benefits:
- Simplified and/or automated claim submission: through a smart contract, the claim submission process will be simplified and/or fully automated (in cases of smart assets)
- Enhanced customer experience: through the streamlined transfer of loss information from insuree to insurer, DLT eliminates the need for brokers and reduces claim processing times
- Automated claim processing: business rules encoded in a smart contract eliminate the need for loss adjustors to review every claim (functionality will enable the loss adjuster to review the claim and provide a decision, in specific risk situations)
- Reduction in fraudulent claims: the insurer will seamlessly have access to historical claims and asset provenance, enabling better identification of suspicious behavior
- Integrated data sources: Blockchain facilitates the integration of various data sources from trusted providers with minimal required manual review
- Streamlined payment process: in most cases, the smart contract will facilitate the payment automatically without effort from the back office
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