Blockchain will make the processing of payments and claims more efficient, secure and guarantee the accuracy of data. Blockchain technology also brings greater transparency, increase efficiency and improve control over data. Every provider can access and exchange information through a blockchain based database – get the facts?
The American firms waste an estimated $375 billion of paper each year. Blockchain can help the insurance industry cut down on several costs especially the administrative expenses of companies and cost related to the manual payment and processing of claims.
Smart contracts can enable instant and automatic execution of both claims and payments, which provides more transparency and effectiveness. This will ensure that all policies of insurance are followed. Blockchain technology and Smart Contracts will not only assist in reducing costs, they will also prevent duplicate processing, reduce disputes, and enhance the management of risk.
Here are a few blockchain-based projects coming to the insurance industry. They can bring more efficiency in the operation of insurance firms:
According to a cryptocurrency news report, Lumenlab had been testing its insurance platform based on blockchain. Lumenlab is an innovation centre for digital technologies located in Singapore and is an affiliate of MetLife. The “Vitana platform” is an automated product of insurance for patients suffering from gestational diabetes. It was created in collaboration with SwissRe Cognizant and Vault Dragon.
A blockchain-based technology was designed to integrate Electronic Medical Records data in order to make payments more efficient upon diagnosis of gestational diabetic. When the diagnosis is confirmed, a smart contract will transmit the bank account information of the patient to the insurance company.
A blockchain startup, B3i Service AG, was founded by the “Blockchain Insurance Industry Initiative” to develop a Blockchain trading platform that can be used in the insurance industry. B3i Service AG, a blockchain-based company, was established to research the potential uses of blockchain technology. The results were integrated into a trading platform. B3i is a blockchain-based initiative that is managed by international insurance firms and supported by large insurance companies like Munich Re, Swiss Re, Zurick, Allianz and Aegon.
According to the most recent cryptocurrency news, Aetna has partnered with IBM to create the blockchain-based platform to help healthcare insurance. The new platform will handle the insurance claims as well as payments as well as maintain directories and maintain them. Aetna is a health insurance provider with its headquarters in the United States, formed an alliance to study and develop blockchain-based solutions. The solutions will concentrate on improving the integrity of data security, as well as bringing greater efficiency in costs.
In January of this year Vermont-based agencies began an insurance plan for captives that was built on blockchain technology. Secretary of State Jim Condos, and Michael Pieciak the Department of Financial Regulation commissioner have agreed to use blockchain technology to enhance state regulatory processes.
In accordance with the agreement both parties will research the benefits of blockchain technology in captive insurance. Self-insurance is a form of insurance where a licensed insurance company is set up by the parent group. The companies insure their risks and lower the cost of insurance through the insurance company.