The Problems In The Insurance Industry That Our Smart Insurance Initiative Is Looking Forward To Resolve
We all know that the banking and insurance industry are the two that which have embraced the blockchain technology open heartedly way back, but have not been able to optimize it to overcome the existing challenges. The insurance sector understands the need to upgrade to remain competitive and cope up for digitally savvy customers. This industry needs to streamline and pace up its processes with data security — being an utmost priority to which blockchain can help in overcoming existing challenges and build a much transparent and trustworthy process.
As we have discussed over and over again in our previous articles and by providing an update towards our smart insurance initiative, we are aware that insurance companies are currently facing multiple issues such as complexity in compliance, fraudulent claim activity, third party transactions and the huge volume of data. With these concerns being rapidly growing, we also know that data insurers have to sift through important documents or policies to provide personalized and enhanced services for clients. Also with digital transactions, it has become hard to streamline the processes. That is why we are now looking forward to producing and completing a commercial version of our platform by the end of Q1. We believe that it holds the potential to resolve the current problems which are stated below:
• Security: Decentralized ledger of blockchain can store voluminous and avoid redundant entries also it validates each user before they can access the data which mitigates the risk of hacking and data stealing. Blockchain ledgers are cryptographically secured which makes it trustable for storing sensitive data.
• Transaction Management: Blockchain can easily manage third-party transactions and increased number of claims. As it keeps the record of each transaction, insurance companies can view previous claims and transaction giving them better insights into customer’s insurance history.
• Transparency: As the distributed ledger is immutable, data once stored cannot be modified or tampered and also is open to view for all on the same blockchain network. These features will bring transparency in insurance procedures and policies and build trust between customer and insurance companies. Immutability will also leverage insurance companies to combat against fraudulent claims and save their cost.
• Smart Contracts: Personalized contracts have shown up which are capable of connecting with multiple systems in real time and trigger claims, payments and reimbursement saving time and money of insurance companies. Also, these contracts will provide better customer experience with their automated process.
Overall, blockchain technology is still to be explored by these industries, particularly by the insurance sector, and many more applications and features will show up in future, just like what we are trying to develop here at Inmediate that will be able to combat current problems and build a faster, more efficient and cost-effective ecosystem for both insurance company and customer, so let us all stay tuned.