Whenever disaster strikes, the world is reminded of the importance of the insurance industry.
In fact, many an insurance company has gone out of business during tough times because of how many people are taking out their claims at once.
If they can weather the tough times, however, the industry will grow.
Another way to help the insurance business grow is to increase productivity by embracing current technologies.
One of the most important contemporary technologies — that any business would do well to work into their business plan — is blockchain.
This article will walk you through some ways that blockchain can help out the insurance industry.
1. It Can Reduce the Rate of Fraud
Fraud detection is one of the most important aspects of the insurance industry. The industry is all about helping people get the justice they deserve. Because of this, opportunists play on people’s emotions to get a payout.
Luckily, blockchain was built to solve exactly this type of situation.
The infrastructure of blockchain was developed in 2009 by anonymous entity Satoshi Nakamoto as a by product of Bitcoin.
Blockchain is the service by which bitcoin — a completely peer-to-peer currency — ensures the security of each of its actions.
Blockchain assigns a complex serial number to each step of a process, that can only be solved by a complex cryptogram.
There’s no one at the top who knows these numbers. This ensures the authenticity of every action.
Blockchain will make it extremely easy to find inconsistencies in a person’s story and see if they’re lying about their insurance claim.
2. Paperwork For Claims
Blockchain also makes it extremely easy for paperwork to be conducted. Paperwork is a long and tedious process.
Though it’s easy to conduct skill-wise, the tedious nature of the tasks makes human error extremely common.
Blockchain programs allow insurance companies to make use of smart ledgers without the risk of compromise.
This makes it much easier to process claims, with some estimates saying it can increase rates threefold.
3. It Makes Customer Engagement Easier
Analysts are all saying that trends in business are trending towards customer safety.
The companies and industries that are going to succeed are going to be the ones that make people feel the most secure.
Blockchain allows customers to a new level of control over their experience filing claims and entering personal information.
Companies that use blockchain technology will make customers feel more secure, and thereby succeed.
4. It Opens the Door For Further Technologies
Lots of new technologies are going to take off in the 2020s. Blockchain opens the door to automation and cryptocurrencies.
If you want to get ready for the future, invest in Private Blockchain for your company.
Blockchain Will Help the Insurance Industry
As you can see, blockchain is going to be important in moving the insurance industry into the 2020s.
At the end of the day, it will turn the insurance industry into a more secure, more engaging experience.
For more articles like this, check out our “technology” section.