After several key industries gained multiple benefits from blockchain technology, another prime segment that is scrambling to test the advantages of this revolutionary technology is Insurance. Blockchain in insurance could make a big impact both for the insurance companies and the policyholders as it can improve competitiveness, execute transactions in a smooth way, manage risks, bolster competitiveness and also integrate the fragmented legacy IT systems.
Blockchain in Insurance Modernizing the Fragmented Pieces
The insurance industry is a significant part of the economy itself. Most people would agree that insurance is critical for businesses as it protects people and businesses from suffering potentially devastating losses. It is a very complex industry with many moving pieces. When technological progress is transforming the business landscape, people demand faster and more individualized customer service.
It is for this reason that the traditional insurance system is quite inefficient and considerably complicated from the customer’s perspective. However, the emergence of blockchain and its application to insurance can resolve the burning issues plaguing the vital segment. Blockchain in insurance can provide solutions to some key challenges faced by the participants in the sector such as increased costs, claim settlements, discerning customers and lack of innovation.
Significance of Blockchain In Insurance
Many insurance companies are unable to supply expected services to customers since they have inadequate information about these people and still depend on a traditional setup. This humongous gap in between this way of providing services for customers and the actual service provision is the main disadvantage from an insurance provider’s perspective. But what many people don’t know is that blockchain technology can make the insurance process more efficient and secure.
So why is blockchain so important for the insurance industry? Blockchain technology can be used to streamline the insurance claims process. Claims can be verified and processed quickly and securely. And because blockchain is a distributed database, it is tamper-proof and incorruptible.
Today with consumers empowered with a few clicks or swipes on their devices, users demand swift services, reliability, economy, and accessibility. Integrating blockchain technology into the insurance sector is of vital importance for the future of the insurance sector. Speeding up the process of integrating and implemen