Blockchain in Insurance Industry
Technologies that make an entry in our life brings innovation and new opportunities across the globe. But many people are resistant to technological changes and they often lack the ability to perceive how new technology can actually improve their life. Many technologies make our life more exciting and change the life by reshaping the way we want them to perform in daily roles. Technological innovations can, in fact, disrupt the whole industry and change the manner in which we work along. It compels such industries to adjust and to be displaced. The most current innovation that is rapidly turning into the following real disruption is blockchain innovation. Some prominent industries that have already adapted to blockchain are-banking, real-estate, healthcare, legal, politics, insurance, startups, education, music, and video etc.
This blog briefly explains how blockchain disrupts the Insurance Industry.
The so-called million-trillion-dollar Insurance industry has been around for a considerable period of time. While different industries are adapting themselves to the new changes and innovations, the insurance industry in many ways is still stuck in the past. Even after the advent of online brokers, it is found that consumers indulge in direct phone calls to insurance brokers for purchasing new policies. Policies are done on paper contracts which means its prone to errors and requires further supervision of humans. Also, the complexity arising out of consumers, buyers, insurers, and reinsurers intensifies the whole concept making it prone to the larger number of risks. Blockchain has been developing as the focal vault of truth for many businesses. It is constantly picking up the pace in the insurance business. This has caused disappointment in the overall framework where data can be lost, policies are confounded and settlement times protracted.
The benefit of blockchain in the insurance industry is that it brings security, transparency, adaptability, immutability, and secured data which makes a feeling of trust. The intrusion of blockchain or the blockchain disrupting the insurance industry is not the mere theme of exchange but also an indulgence of high purposive discussions among the investors, innovators and insurance providers.
There are numerous reasons that make blockchain a hot discussion topic. Those interested can read our previous blog titled Top 12 benefits of the Blockchain. With the advent of new characteristics in the blockchain, the demand of blockchain is growing day by day. It is soon turning out to be the basis for every public sector applications. Coming into the insurance sector, the blockchain act as an unbeatable solution as it substitutes with an Internet-based networked database for storing the data in utmost secure and protective format. It doesn’t induce any threats unlike the conventional database of insurance industry faced.
The innate highlights of blockchain offer arrangement of advantages to the insurance companies, any semblance of which incorporate :
> Seamless proceedings
> Less processing period
> Minimal fee
> Immune to fraudulent activities
> Easy access to real-time info
> Improvised customer satisfaction
> Upgraded KYC compliance
Continue Reading… The major areas where blockchain is reconstructing the insurance industry:
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