Aigang: Digital Insurance In A Brave New World
Imagine if there was a way to drastically speed up the process of settling an insurance claim while at the same time reduce the costs involved.
In most instances that would mean cutting some serious corners and but I recently discovered that insurance company Aigang are going to be utilising blockchain technology to deliver a service that is faster, more accurate, and costs less than ever before.
The traditional insurance claims process is archaic and has failed to keep pace with the technological advances of the modern age but Aigang will work differently by making use of ‘smart contracts’ in order to deliver a better product, faster.
Potential fields of application for this new technology include claims handling, fraud detection, reinsurance, and new payment methods while benefits include increased effectiveness in pricing, reduced administrative costs, and new products and services for growth, to name a few.
For now, I want to focus on the claims handling side of things, as this is an area that I believe has huge potential.
Insurance claims usually follow the same process: claim event, notification, settlement, and payment.
Claim Event: Traditionally, when a claim is made, the duty to detect the event lies with the insured person. This can create problems, as they may not even be aware of the event at the time that it occurs and only end up noticing a long time afterwards.
With Aigang’s use of ‘smart claims’, it will be possible to automate event detection and pinpoint the exact moment that the event occurred, e.g. a vehicle crash or device malfunction could be automatically detected and the process to have it resolved could begin immediately.
Notification: Currently, the responsibility to report a claim lies with the insured person but it’s often the case that the initial reporting is delayed. With Aigang, notification would be instantaneous for cases where the claim event is detected automatically. This will help to streamline the entire process from the very start.
Settlement: At present, the verification of a claim’s validity and the details required to determine the claim amount rely heavily on human factors. Due to human nature, various conditions can be interpreted subjectively and cause disputes which may lead to costly court battles.
It doesn’t have to be like this: if the insurance coverage can be standardised in such a way that claims are validated automatically by the ‘smart claims’ software, settlement can become truly objective and autonomous.
Payment: In most cases, payment (either actual payment or the replacement of a damaged item) is the final stage of the claims process. A ‘smart claim’ software code can make the money transfer or trigger the repair process automatically, saving both time and administrative costs.
Claims handling is just one facet of the insurance industry that will be vastly improved by the introduction of blockchain technology and Aigang is leading the charge towards a faster, more efficient future.
In the coming weeks, I will be covering fraud detection, reinsurance, and new payment methods. I will also explain how smart contracts will lead to increased effectiveness in pricing, reduced administrative costs, and new products and services for growth.
There is so much potential for this new technology with new applications being discovered all the time. The future of the insurance business looks bright for those brave enough to grasp it.
Learn more about Aigang at — http://bit.ly/AigangWebsite
Aigang Latest Version of Whitepaper — http://bit.ly/AigangWhitepaper
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