Blockchain technology can increase the efficiency in processing claims and payment, as well as the accuracy and security of data. Blockchain technology also brings more transparency, interoperability and improved data control. Any provider can easily access and exchange data through blockchain-based databases. More help?
A staggering $375 billion is thrown away annually in paperwork by the American firms. Insurance companies can save money by using blockchain technology. This is in addition to the expense of administrative costs as well as the cost associated with manual claims processing and payments.
Smart contracts can enable automated and real-time processing of claims and payments providing more transparency and effectiveness. It will also ensure that the terms of the policy being followed to. Blockchain technology and Smart Contracts will not just assist in reducing costs, but will also reduce duplicate processing, reduce the time to resolve disputes and increase the management of risk.
Here are a few Blockchain projects that are coming up for the insurance industry. These projects will bring in more effectiveness in the management of the insurance companies:
Lumenlab was testing its Blockchain insurance platform that is based on blockchain for diabetes patients, as reported in a cryptocurrency news. Lumenlab is a digital innovation center that is based in Singapore and is a subsidiary of MetLife. The ‘Vitana platform’ an insurance product that is automated for people suffering from gestational diabetes. It was created in collaboration with SwissRe Cognizant and Vault Dragon.
The solution based on blockchain was developed to integrate Electronic Medical Records (EMR) information in order to facilitate an auto payout on confirmation of the diagnosis of gestational diabetes. On confirmation of diagnosis the smart contract will send the customer’s bank account details to the insurance company.
B3i Service AG was created by the “Blockchain Insurance Industry Initiative” in order to develop the first trading platform using blockchain technology for the insurance sector. B3i Service AG was formed to research the possible uses of the technology and implement its findings in an online trading platform using blockchain. B3i is a blockchain-based initiative managed by international insurance companies and supported by major insurance firms, such as Munich Re, Swiss Re, Zurick, Allianz and Aegon.
Even Aetna has partnered with IBM to develop a blockchain based platform for healthcare insurance, according to a recent crypto news. The platform will process insurance claims, make payments and directories. Aetna, a health insurance provider with its headquarters in the United States, formed an alliance to explore and develop blockchain-based solutions. These solutions will enhance security and integrity of the data as well as result in higher efficiency in cost.
In the month of January, Vermont-based agencies launched an insurance plan for captives that was using blockchain technology. Secretary of State Jim Condos, and Michael Pieciak the Department of Financial Regulation commissioner agreed to implement blockchain technology in order to enhance the state’s regulatory process.
In accordance with the agreement the two parties will explore the advantages of blockchain technology for captive insurance. Self-insurance is a form of insurance where an insurance company that is licensed is set up by the parent group. The insurance companies cover their risk and reduce their insurance premium by forming an insurance company.