Blockchain can make the processing of payments and claims faster, safer and assure the accuracy of data. Blockchain technology also provides greater transparency, interoperability and better data management. Anyone can gain connect and exchange information via blockchain databases. Click for source?
The American companies waste approximately $375 billion of paper each year. The insurance industry can reduce costs by using blockchain. This includes the cost of administrative fees and the expense associated with manually processing claims and making payments.
Smart contracts are able to facilitate instant and automatic execution of claims and payments providing more transparency and efficiency. This will guarantee that all insurance policies are adhered to. Blockchain technology and Smart contracts won’t just cut costs, but will also reduce duplication of processing, eliminate disputes, and increase risk management.
Here are a few blockchain-based projects coming to the insurance industry that will bring in more efficiency in the running of the insurance companies:
Lumenlab has been testing its blockchain based insurance platform for diabetes patients, as per a cryptocurrency news. Lumenlab is a digital innovation center located in Singapore is a MetLife subsidiary. The platform “Vitana” is an automated insurance product for gestational diabetes patients and has been co-developed in collaboration with SwissRe, Cognizant, and Vault Dragon.
The blockchain based solution was designed to integrate Electronic Medical Records (EMR) information in order to facilitate an auto payout upon the diagnosis of gestational diabetes. A smart contract will automatically forward the bank account information of the insured insurer upon confirmation of diagnosis.
A blockchain-based startup, B3i Service AG, was formed by “Blockchain Insurance Industry Initiative” to create a blockchain based trading platform for the insurance industry. B3i Service AG, a blockchain-based company, was established to explore the possible uses of blockchain technology. The findings were later integrated into a trading platform. B3i is an international blockchain-related initiative run by insurance companies. It is backed by of the major insurance firms including Munich Re, Swiss Re Zurick, Allianz, and Aegon.
Even Aetna has partnered with IBM to develop a blockchain powered platform for healthcare insurance, according to recent crypto news. The platform is expected to handle the insurance claims and payment as well as maintain and manage the directories. Aetna is a United States based health insurance company. The company joined forces in the year 2018 to design and test blockchain based solutions. These solutions can improve the security and integrity of data, as well as bring about an increase in efficiency and cost.
In January of this year the Vermont-based agencies started an insurance plan for captives that was that was based on blockchain technology. The Secretary of State Jim Condos, and Michael Pieciak the Department of Financial Regulation commissioner decided to implement blockchain technology in order to enhance the state’s regulatory process.
In accordance with the agreement the parties will study the benefits of blockchain technology for captive insurance. Captive insurance, sometimes known as self-insurance, occurs when a parent organization forms a licensed insurer. Through such an insurance company, the companies can reduce the cost of insurance and self-insure.