Emerging Blockchain Innovations in Insurance — II

01 Evolution of Insurance Products

Mutual Insurance will come into play, as premiums paid by each and every insured get stored in the DAO, with each and every insured participant having the right to vote and therefore decide upon final claim settlement when a claim is triggered. Decentralization makes the process transparent and highly efficient with secure premium collection, management and claim payments.

02 Wide Applications in Auto Insurance

Blockchain has wider application scenarios for auto insurance products when combined with IoT. Be it a single-vehicle perspective, or complete fleets, the complete history of each vehicle can be stored in blocks, which can allow insurers to access accurate information on maintenance, accidents, vehicle parts conditions, history, and driving habits, facilitating accurate pricing.

BCG Analysis

03 Digital Claims Management

Blockchain provides inherent advantages in financial settlement. Through smart blockchain can be applied efficiently and securely throughout the entire process of insurance underwriting, premium collection, indemnity payment, and even reinsurance. When the parameters are met, policies will be triggered automatically by the smart contract and a record stored in the blockchain. The insured can automatically receive indemnity when conditions in the policy are met without human intervention to adjust the settlement.

PWC I Blockchain a Catalyst for New Approaches in Insurance

04 Fraud Detection and Risk Prevention

Fraud prevention translates directly to higher margins for insurance companies, and cheaper premiums for consumers. Blockchain technology can enable better coordination between insurers to combat fraud. On a distributed ledger, insurers can record permanent transactions, with granular access controls to protect data security. Storing claims information on a shared ledger will help insurers collaborate and identify suspicious behavior across the ecosystem.

Future Possibilities with Blockchain

Imagine an insurance ecosystem where:

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