Insurance

One of the most significant advantages that blockchain can provide is cost savings. It’s easy to see how the use of blockchain could affect claims, administration, underwriting, and product development, and today, many blockchain use cases are centered on cost-cutting efforts. The use of blockchain to automate the payment of claims is one of the first areas that insurance companies are considering. By verifying coverage between companies and reinsurers, blockchain has the potential to help automate claims functions. It will also automate payments between parties for claims, lowering insurance companies’ administrative costs.

The transmission of any type of digital evidence for underwriting, including the use of electronic health records (EHR), is another potential use of blockchain. We can expect future changes in pricing and product development as digital evidence becomes easier to incorporate into underwriting. The Internet of Things (IoT) and Artificial Intelligence (AI) combined will result in the automation of insurance processes, transforming our industry in the near future.