Blockchain: the new ally of the Insurance Industry

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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!

Why the Insurance Industry should be digitalized?

The digitilization has allowed the insurance industry to make important advances in innovation. Only a few years ago, insurance could not be contracted digitally, while today the client can quote, contract and have assistance through different channels and anytime, anywhere. The entire ecosystem that technology and the Internet makes available to the industry has allowed the sophistication of any product or service.

In Chile there are companies, such as Seguros Fallabella, which has an app that allows you to request a crane and know its route in real time, schedule a technical review, request replacement drivers, among other functions.

In Colombia, the Insurance industry has remained largely on the sidelines, having a good level of development, from the point of view of the Latin American context, where they have implemented digital and market strategies. Strategies have been managed, but current technological advances have not been sufficiently involved, since part of the underdeveloped countries remains increasingly linked and begin to test other functionalities such as disruptive technologies, artificial intelligence, blockchain, among other tools that can support new models in the industry.

Chile highlights and presents advances in digitization of the industry, there are some companies such as the aforementioned that have arranged online contracting, app development, among others, which has been designed to guarantee a better customer experience.

The use and implementation of new technologies is key to respond to customer needs. Today mobile applications are an important tool for the insurance industry, since they allow us to deliver a close and effective service that meets what the client is looking for.

The insurance industry is one of the oldest and probably one of the only ones to have sold the same product since its origins, which could suppose that it has been a sector with minimal changes.

However, the emergence of the digital age has created various aspects that have become opportunities for innovation and development for insurers, and currently, many have obtained great benefits for risking change.

The digital age is synonymous with opportunities and challenges for insurers, they have always sought to be able to approach their brokers and clients, especially without being dependent on the former.

Thanks to the digital resources that exist today, the insurance industry has at its fingertips new attractive and favorable means to achieve the loyalty of its policyholders, through personalization, reasonable costs, better times, among others.

Currently, there is the phrase “adapt or die”, which has a precise and adapted meaning so that any company is able to analyze its opportunities in order to start a process of adaptation to the digital environment that has been underway. Many insurers have sought to diversify the platforms where they are in contact with their policyholders in order to offer them a rapid and timely response to their requirements.

The digitalization of insurance companies, will increase adherence to customer needs, the development of online services, communication with a provider 24 hours a day online, in addition to maintaining a value chain throughout the insurance process.

Nowadays, the Chilean insurance industry has begun to prepare and initiate changes in services and digital interactions, whose short-term objective with its policyholders is more fluid and narrow.

Taking everything mentioned above, we take the opportunity to remind you why LISA Insurtech is the best insurance solution and innovation in Latin America … Could it be that our technology reduces operational costs up to 60%? or maybe, Because are all of our processes fully automated, digital and completely secure? Contact us to tell you more by clicking here.

Digital transformation: The revolution of the Insurance Industry

The increase in the digitization of households and production processes, combined with the growth of digital industries, has resulted in a growing impact on economic development, in addition to opportunities for business transformation. According to research by Katz and Callorda, a 10% increase in the digitization index generates a 0.75% increase in GDP per capita for a sample of 150 countries and 2.42% in the GDP of OECD countries ( like Chile and Mexico).

136/5000The development of the insurance industry has been supported by the progressive digital transformation process and has impacted in two ways:

Events that reflect new risks, such as cyber attacks, gave rise to various types of coverage. According to Accenture’s “Insurance the future 2018” study, worldwide, 45% of security breaches suffered by the industry go undetected in less than a week and 9% in more than a month.

Nicolás Deino, director of Financial Services at Accenture Chile, plans and claims that cyber attacks have become more pronounced and it is of utmost importance that companies invest capital in technologies such as artificial intelligence and automation.

The second impact that we found is that technological advances provide new mechanisms to facilitate the manufacturing and marketing processes of insurance products.

Currently, various companies dedicated to the insurance market use various technologies that have better developed the business: artificial intelligence, the Internet of Things, blockchain, chatbots, being some of the tools that came to stay and revolutionize.

The above phenomenon is known as Insurtech, a model that uses technology as a foundation to improve the insurance business system. In Chile, progress has already been seen in this area.

This technological innovation will allow significant improvements in the process of policyholders to products that best meet their coverage needs.

The detection of fraud in the management of claims is one of the most important problems in the insurance industry. LISA, through its technology, is capable of detecting any risk during this process.

With LISA, you can prevent fraud effectively in each of the phases of the insurance settlement process, through our technology we also improve and automate each of the stages of settlement in an easy and digital way. Digitally transform your company, communicating with us by clicking here.

Why you should buy an Unemployment Insurance?

Did you know that most Latin American countries operate with work termination compensation plans? These plans provide for the delivery of a single sum as compensation to help unemployed workers get out of trouble while their unemployment lasts. However, in recent years unemployment insurance plans have been introduced, in most cases complementary to termination benefits, however, the access rules are somewhat restrictive. For example, in Mexico it is restricted to workers between 60 and 64 years of age.

Did you know that most of the Latin American countries operate with a work termination compensation plan? These plans are provided for the delivery of a single sum as compensation to help unemployed workers to get out of trouble while thier unemploument last. However, in recent years unemployment insurance plans have been introduced, in most cases complementary to termination benefits, however, the access rules are somewhat restrictive. For example, in Mexico it is restricted to workers between 60 and 64 years of age.

Likewise, all the countries belonging to the OECD (Organization for Economic Cooperation and Development), among which Chile and Mexico stand out, have reduced the protection provided by their unemployment benefit systems in the 1990s. The rules for accessing them have been tightened, in addition to the duration of benefits.

It is common that at some point in our lives we go through a stage of unemployment, where incomes are reduced considerably and we feel unprotected. Despite the existence of the public unemployment benefit, it is sometimes not enough to cover expenses and bills (food, services, rent, among others).

Having general unemployment insurance is one of the ways to protect yourself in the event of a layoff. In the event that the owner loses his job, the contracted policy will guarantee him for a certain time, an economic consideration.

This type of insurance has evolved over time, which is why it is currently common to find various modalities in terms of coverage, which can be the payment of a fixed amount per month, payment of monthly receipts and even greater provision in terms of credit card.

What should we take into consideration about this insurance?

1.- In general, this type of insurance protects employees with indefinite contracts, with which companies guarantee that they will be able to keep you without setting a specific time. That is why you must have a minimum of six months in most cases, to be able to hire it.

In the same way, everything will depend on the profile of the employee, since some people are hired for a certain project (and the time it only lasts), which is why the insurance would cover the time stipulated in said contract and then the coverage would not apply.

2.- In order to benefit from this type of insurance, a grace period is established between one and two months, with a time limit of months where the policy can cover the unemployment situation depending on the maximum compensation.

3.- It is necessary to take into account if there is any monthly payment limit (since the policy sometimes covers only a percentage of those payments).

4.- The restrictions of these insurances in various situations such as an early retirement, a job resignation, among others, since each one includes different clauses.

Taking out unemployment insurance guarantees financial security in the event of an unexpected stage of unemployment, thus offering a livelihood for the contractor while he manages to position himself as an active worker again.

Knowing all this, it is worth remembering that with LISA they can fully automate the settlement of Unemployment Insurance, quickly and effectively, reducing their operational costs by up to 60%. Get in touch with us!

The new insurance allies, digital ecosystems

Currently, the technological world represents a great movement of changes in the digital ecosystem, which generates a stimulus in the creation of new technological ideas, which are increasingly becoming a reality in the market. The latter creates a great challenge for insurance companies since they will have to meet the new expectations and need of consumers.

In the case of Mexico, this country reached 71% of penetration in the internet access, where the most frequent activities in the use of the network are the use of Social Media, sending and receiving messages through chats, sending and receiving emails, online banking, video calls, online shopping, etc.

In different studies and advances in digital technology, we found that only 50% of the Latin American populations is a participant in digital ecosystems, where the offer products and services has not been consolidated within technological tools. This is extremely important given the potential of creating a regional market that allows developing a competitive offer and economies of scale.

Insurance Companies

The unstoppable rate of change that the insurance company has undergone due to the increasing social dependence on digital technologies has created the environment conducive to restructuring both customer expectations and the limits between industries.

In the first instance, we must mention that a business platform is nothing more than a model that allows the connection between producers and consumers, where they connect to it, there is interaction and exchange of value (Facebook is the example of one).

On the other hand, an ecosystem is an interconnected set f services that allow users to satisfy a variety of needs in an integrated way. Currently, the most consumed ecosystems are concentrated in medical care, housing and travel.

The intensive use of digital technology has become part of everyday life, which is why the insurance industry has had to reinvent itself and within an ecosystem there are various possibilities to perform various functions: expanding into new areas such as travel, purchasing vehicles or traffic, thus obtaining new results and a wide variety of opportunities for growth.

The birth of ecosystems means a symbiotic relationship so that companies can relate to others in order to achieve grater value for them, more than they could obtain on their own. There are many examples tht we could mention, such as Apple, when launching the Healthkit App where its users share health and activity data, thus helping the world medicine, hospitals and doctors, to inform about the patient in addition to conducting studies, development of roducts, among others.

Using the ecosystem as a strategy can facilitate the expansion of insurers in other areas, offering hybrid and innovative solutions. With LISA you can improve and accelerate the implementation of technology in your company, contact us!

The Future of the Insurance Industry

The current and future development of the insurance industry will depend on the ability of the industry to be relevant, deliver solutions and strengthen itself, beyond the traditional environment, particularly in Colombia and Latin America.

The future of the industry is in the development of accesses that have, affinity and relevance, which is why understanding current demographic changes and those that are to come are some of the essential aspects to get out of the traditional adaptation of the insurance and its distribution by socioeconomic strats. This translates into not tinting clients with the same insurance but according to the reality of each one.

Thanks to the above, the low penetration of the insurance marketing will be allowed to increase. Measuring the value of the premiums, in 2017 it was 2,85% of the GDP in Colombia, far from the average of Latin America (3.2%) and 9% of the countries of the Organization for Economic Cooperation and Development (Chile and Mexico being some of them).

The Insurance Industry and Communication

Internet communications are becoming increasingly important in people’s lives. The insurance industry sector has begun to understand that the future lies in how it works online.

In this way, new platforms and models of insurance industries have emerged, which have decided to jump once and for all to the digital platform to enter the era of networks and reach more people around the world and thus, regardless of distance geographic, be closer to your customers.

New skills and changes

New industries understand that people today love possibility to customize your insurance according to your needs, so the future is inoffer fully customizable and non-standardized plans.

Likewise, other sectors such as banking now offer insurance plans, so that the change is mandatory for traditional insurance industries that still fear change if you don’t want to be left behind seeing how the competencies cover the whole market.

For all this, the future of the insurance industries seems to be very dynamic for the first once in history and full of many changes.