Blockchain technology has been touted as the next big thing in the insurance industry. It has the potential to revolutionize everything from data collection and sharing to payments and even fraud prevention. While some believe blockchain will immediately impact the industry, others feel it’s still too early to tell exactly how the technology will affect insurers—and their customers—in years to come. However, there’s no denying that blockchain is starting to gain traction within the insurance industry. This can mean big things for both insurers and their customers alike. How Blockchain Works In Insurance To understand how the insurance industry can use blockchain, it is important to understand what blockchain technology is. It provides an online, public ledger that everyone can see. This ledger contains transactions that are validated and recorded. There is also many other potential insurance uses, like smart contracts to automate benefits calculations and payout approvals. If you pay your insurance premium on time and stay accident-free, a smart contract could automatically increase your deductible or reduce your coverage limits if needed. Plus, you could use distributed ledgers to share data securely with multiple parties without creating a central repository. One of those parties could then hack into and modify data from multiple angles. Benefits Of Blockchain Technology For Insurers The insurance industry is a vast network ...
