Blockchain can make the process of payments and claims more secure, efficient and guarantee the accuracy of data. Blockchain technology also brings in more transparency, improve the interoperability of data and give better control over the information. Blockchain-based databases permit all service providers to exchange information and get access to data.
About $375 billion are thrown away in paperwork every year by American businesses. The insurance industry could save money using blockchain. This is in addition to the expense of administrative costs and the expense associated with manually processing claims and making payments.
Smart contracts allow for automatic and real-time execution of claims and payment, providing greater transparency and efficiency. Additionally, it will ensure that the conditions of the policy adhered to. Blockchain technology and Smart Contracts will not just aid in reducing costs but also eliminate duplicate processing, reduce disputes, and enhance the management of risk.
These are blockchain-related projects currently in development specifically for the insurance sector. They can help increase the efficiency of the insurance industry.
Lumenlab is testing its blockchain insurance platform that is based on blockchain for diabetes patients, as per a cryptocurrency news. Lumenlab, a digital innovation centre located in Singapore is a MetLife subsidiary. The platform called “Vitana” is an automatic insurance program for gestational diabetes patients and has been co-developed together with SwissRe, Cognizant, and Vault Dragon.
A blockchain-based solution was developed to integrate Electronic Medical Records data in order to automate payouts upon diagnosis of gestational diabetic. When the diagnosis is confirmed the smart contract will transmit the details of the customer’s bank account to the insurance company.
B3i Service AG was created by the “Blockchain Insurance Industry Initiative” in order to develop a trading platform that is based on blockchain technology that is used in the insurance sector. B3i Service AG was formed to study the potential uses of the technology and implement its findings in a blockchain trading platform. B3i is an international blockchain project that is overseen by insurance firms. It has the backing of the major insurance firms such as Munich Re, Swiss Re Zurick, Allianz, and Aegon.
Even Aetna has partnered with IBM to create a blockchain powered platform for healthcare insurance, as per new crypto news. The platform will process insurance claims, payees and keep directories. Aetna is an United States based health insurance company. The company had formed an alliance in 2018 to develop and test blockchain based solutions. These solutions will focus on improving the integrity of data security, as well as bringing more cost efficiency.
In January of this year the Vermont-based agencies started an insurance program for captives based on blockchain technology. There was a deal between the Secretary of State Jim Condos and Michael Pieciak the Department of Financial Regulation Commissioner to improve the state regulatory process by implementing blockchain technology.
According to the agreement both parties will research blockchain technology and its advantages for the captive insurance field. Captive insurance, also known as self-insurance, occurs when a parent organization creates an insurance company that is licensed. With an insurance firm they can lower their insurance premiums and insure themselves.