The impact that Digital Transformation has brought on companies is indisputable, which is why, venturing into various technologies, this has made it possible for many companies to be more innovative, but… which is the impact of Blockchain inside the Insurance Industry?.
The Insurance Companies have been characterized by the sale and the experience that they offers to his clients. and naturally their clients seek immediacy, responsibility and solutions, but there are many processes that policyholders must go through to solve their problem, and there it is when the Blockchain enters the scene.
But… What is Blockchain?
The Blockchain was born from the invention of Bitcoin (cryptocurrency), and refers to a database whose purpose is to serve as a record of transactions that are carried out digitally, thus being an instrument to generate trust, the which is essential for insurance companies. Despite its importance, implementation has been scarce because it is a complex technology.
Finally, on the Insurance Industry, the blockchain has the following uses:
- Fraud prevention and detection: The number of these incidents is at least $ 80 billion a year. Blockchain transparency enables effectiveness to improve fraud detection, insurance companies collect data and then through it predict fraud.
- Complaint management: This process has an extensive attention period, thanks to the Blockchain, it will be possible to make use of a model in which the client can better manage their requests and thus guarantee satisfaction.
- Reinsurance: They are responsible for protecting insurers and their interests at the time of an unfortunate event. Unfortunately, reinsurance processing is done manually and is affected by the lack of information flow between organizations, this is where the blockchain provides a simplified network for the exchange of information between the parties that can connect with each other for the resolution of the claims.
- Accident and property insurance: This type of insurance is one of the most important and used, however, it suffers undue management of your data, its claim process and in addition to unnecessary premiums. The blockchain solves this problem with digital registration, that is, by automatically processing claims through smart contracts.
- Health insurance: This type of insurance is another of the most important, however, due to the confidentiality of the data, the process of any procedure has become tedious and slow. Thanks to the blockchain an the adequate (secure) exchange of medical information, an effective process of claims will be guaranteed.
The implementation of the blockchain in the company will take time, however it is necessary to emphasize that it is essential in almost all industries today, including the insurance company, to not only prevent fraud, but to collect and distribute confidential data, streamline processes, among others.
Due to all the aforementioned, at LISA we use Blockchain in our systems, in order to provide a fully automated service, detecting fraud and protecting all the information of our clients and their policyholders, for all that and more, we are the most innovative Insurtech of Latinamerica. Get in touch with us!