Blockchain is causing the fourth industrial revolution and becoming the next big influencer for the Insurance sector
Blockchain Reshapes the Processes that Govern the Insurance Sector
Discerning customers, increasing costs, and innovative technological advancements are a few of challenges experienced by health and life insurance companies. Health and life insurers are now scrambling to adopt blockchain to improve the way they manage records, interact with stakeholders and execute transactions.
The question is whether blockchain’s unique attributes could really help insurers manage risk, cut costs, improve customer experience, expand their business, and, ultimately, support the bottom line.
A number of undesirable knock-on effects in the Insurance Industry
A lack of transparency.
Encouraging the purchase of unsuitable products
Questionable marketing tactics
Complicated, discouraging claims processes
Claims adjusters incentivized to deny claims
Complicated product offerings
Insurance fraud
How Blockchain Plays a Vital Role
Although the term “blockchain” is generally used to signify “distributed ledger,” a blockchain is just one of many verticals of data structures that offer secure and valid realization of distributed consensus.
Unlike the blockchain technology where data is stored and linked to one another in a chronological way within blocks, DLT (distributed ledger technology), which either can be permissionless or permissioned, covers the sharing of databases amongst all the existing participants (nodes) of the network.
How DLT Shapes the Future of Financial Service Infrastructure
Almost every activity in the insurance value chain could be affected by DLT. Researching and working through the life cycle of an insurance transaction, we found these areas can be improved amazingly:
Customer identity and AML
Underwriting
Distribution
Innovative products
Claims handling
Reinsurance
Capital markets
Distributed Ledger Technology is Transforming the Financial Landscape
DLT holds the potential for streamlining, modernizing, and enhancing the siloed infrastructure of the Insurance industry using a shared fabric of common information. Let’s see what it does:
Simplifies Operations
Cuts down on human activities required to run reconciliation and fix disputes.
Improves Regulatory Efficiency
Enables real-time tracking by regulators of the financial activity of regulated entities.
Reduces Counterparty Risk
Challenges the need to trust counterparties to attain obligations as agreements get codified and executed using Smart Contract.
Reduces Clearing and Settlement time
Disintermediates the need for third parties that bolster verification / validation and thus, accelerates settlement.
Improvises Liquidity and Capital
Lowers locked-in capital and brings transparency into sourcing liquidity for assets.
Minimizes Fraud
Allows full transaction history and asset provenance to be maintained within a single source of truth.
Why Oodles For Blockchain Based Insurance Solutions
Oodles Blockchain is a branch of Oodles Technologies, which has set out to explore the potential of using Distributed Ledger Technologies within the insurance industry for assisting all stakeholders in the value chain.
We offer effective insurance solutions by developing them on a blockchain platform that’s most suited to provide better outcomes and opportunities for efficiency, growth and quality over the value chain to bring advantages to all participants including end customers.
We wish to provide the insurance sector the medium to grow its community of shareholders, partners and customers and form an ecosystem of insurance services and products designed “by the market, for the market.”
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