Robust Blockchain Revolutionize the "Insurtech" Technology
The robust blockchain revolutionizes the "Insurtech" technology through new insurance-related applications on a distributed ledger. As a result, there is a dire need for efficient blockchain applications in the insurance industry.
The insurance industry is robust and stable, but some elements can be improved. Blockchain technology can propose solutions to some of the problems within the insurance industry. As the banks and other financial institutes rapidly change as per customer demands, uplifting security has become a significant concern. Before diving into how blockchain helps the insurance industry, let's first understand Insurtech.
What does Insuretech mean?
Insuretech is a portmanteau of 'insurance' and 'technology.' It is the application of technology in the insurance sector to provide better services, reduce claims settlement time, and mitigate risks. It includes intelligent automation systems, predictive analysis tools, etc.
This term also refers to delivering efficiency and savings to financial institutes using a technology stack. It is done through mobile applications, big data analysis tools, marketing analytics, smart contracts for automatic claims settlement, and digital currencies. With increasing demands and the need for higher convenience, Insuretech needs the support of blockchain technology. It is where different decentralized applications come into play that empower the overall insurance industry to do more with fewer resources and a shorter turnaround.
Why do we need blockchain in the insurance industry?
Blockchain technology helps in preventing fraud cases through the use of smart contracts and real-time processing. It also reduces both manual and human error during claims settlement.
Blockchain technology is used for decentralized insurance applications where insurers, customers, brokers, agents, and other parties can easily access a system. It serves as a single source of truth between many different participants involved in an insurance transaction. Moreover, blockchain provides a transparent platform and a secure network that ensures privacy while providing cost benefits to all stakeholders.
Blockchain solves several problems for the insurance industry. It can alleviate issues such as duplication of insurance coverage, managing complex international claims, and a high rate of fraud cases. Unfortunately, these issues also contribute to low customer satisfaction within the industry. As customers now seek decentralization and better privacy for their data, blockchain plays a critical role in fulfilling all the demands.
How does blockchain empower the existing Insurtech?
Below are some critical advantages of blockchain that help insurance companies and institutes to drive more efficiency and agility:
There is no requirement for any complex software systems to build an automation environment with blockchain. It reduces the number of errors due to human processing and saves costs. Also, smart contracts ensure a consensus between all the players or participants involved in an insurance transaction. It further enhances the whole automation process of a claims settlement.
Accurate calculation of premiums:
The blockchain-based system calculates accurate premiums for customers based on their risk behavior and insurance requirements. Inefficient estimation of premium costs by traditional methods results in cash flow issues and higher profit margins from customers who don't require it.
Blockchain technology helps prevent fraud cases while providing a secure network for transmitting either regulated data or financial transactions among businesses and consumers. It also provides a decentralized environment where tampering with the transaction is impossible due to the lack of a single point of failure. It reduces processing time and costs while ensuring a faster turnaround.
Easy access to information:
With blockchain, all the associated data is available in a single place for authorized parties. It makes it simpler and easier for them to access the required information in compliance with local regulations. In addition to this, there are no issues of storage space as everything exists on the distributed ledger - from claims history records to regulatory files. This provides a customer-friendly environment where they get real-time updates about their claim status or insurance policy documentation during any time of the day.
Blockchain technology offers greater transparency, with smart contracts acting as an automated system that ensures accuracy and transparency. The decentralized nature of the blockchain further enhances the transparency of the information by making all transactions accessible to each party involved in a transaction. This ensures easy access to claim history records, premium payments, policy details, etc. It also allows customers to track their claims or policy details at any time through a customer-friendly interface (web or app).
Efficient insurance management:
The use of blockchains helps with secure storage, accurate data processing, real-time updates for customers and regulators, privacy protection/data sharing across entities with no middlemen involved in settlement activities, among other things. Together, all these factors help insurers achieve superior control over their business operations and provide a better customer experience.
Blockchain offers universal autonomy to all the parties involved in an insurance transaction. This will reduce costs and lead to a more efficient insurance environment. Furthermore, no one can alter the data in an unauthorized manner due to the decentralized nature, i.e., no single point of failure without compromising on the immutability and security of the blockchain technology itself.
The distributed ledger provides a shared data source for all parties involved in an insurance transaction. It ensures that customers are always at peace with their insurance provider.
How do Seven Bits help insurance companies?
Seven Bits is a leading blockchain development company offering full-fledged services to insurance companies. We have a team of experts dedicated to designing blockchain-based solutions targeted at solving specific business problems. Our experts are well-versed in the latest technologies and methodologies, allowing us to understand your business requirements precisely and provide custom-made solutions that offer an edge over industry competitors. Some of our critical solutions involve:
Smart contract development:
Using the Ethereum blockchain technology, we offer intelligent contract development services to meet industry-specific needs. We have a well-organized team of experts who design and develop custom contracts keeping in mind your business requirements to provide a unique edge over competitors.
Legacy system migration:
For insurance companies interested in migrating their legacy systems to the blockchain, we offer services to design and develop completely decentralized applications. Our expert team has extensive experience working with different kinds of legacy systems which allow you to migrate your system easily without glitches or failures.
Integration of blockchain with other technologies:
We understand the importance of integrating blockchain with other technologies such as cloud computing and more to provide complete end-to-end insurance solutions for enterprises of all sizes. Our experts design and develop custom applications that suit your business requirements and offer a unique edge over competitors.
Contact us today!
Want to know how Seven Bits can help you scale the business faster and onboard more customers? Get in touch with us at [email protected] to discuss your requirements with our team