Blockchain is all set to transform industries, one after the other, and it seems that the insurance industry is the next in the list.
As the founder of InsureBlocks, a blockchain-based startup in the educational industry, Walid Al Saqqaf believes, blockchain technology will soon evolve itself to emerge as the foundation for conducting the insurance business.
What makes blockchain a perfect fit for the insurance industry is its decentralized nature which enables the users to share their data securely and confidentially. This is the reason perhaps why a range of products and startups are popping up.
In this article, we will have a close look at various innovators which are streamlining the industry.
The North America Representative of B3i, Susan Joseph, explains that B3i is planning to introduce a robust blockchain-enabled ecosystem which will be first launched in the reinsurance sector and then will be rolled out in commercial insurance.
The first product will cover the catastrophic excess of loss and is expected to be out in January. Through their own infrastructure, they are hoping to build products and services in order to automate labor-charged and inefficient procedures.
RiskBlock Alliance is working on another great innovation. The group comprises 34 insurers and brokers belonging to casualty and property space and plans to introduce blockchain-based solutions for various real-world problems.
For this to take place, the group has created a blockchain-based framework, Canopy. It comprises various interconnecting blockchain. The project has proven to be promising, attracting the consulting firm, Deloitte, who has announced on September 25 to help the Institute’s RiskBlock Alliance expand into Canada.
RiskBlock aims to fight fraud in the industry through blockchain technology. It is a blockchain consortium comprising of more than 30 insurance companies.
While RiskBlock Alliance and B3i are working hard to streamline the current processes, there are other innovators like Etherisc which have developed smart contract tools to create decentralized insurance policies on the Ethereum blockchain.
FlightDelay is one application which provides the users with insurance against the risk that their flight will be cancelled or delayed. The policies can be purchased using a credit card, and if their flight is delayed by 45 minutes or more, the insured people receive the suitable amount automatically without any paperwork.
There is another application by Etherisc which allows Puerto Ricans to insure their homes against the risk hurricanes for up to $5,000. In the case the homes are damaged by hurricanes, the policy provides the insureds with an automatic payout.
Blockchain is indeed an amazing technology that humans ever developed. While the traditional insurance participants are working to streamline the existing processes, there are insurance-tech entrepreneurs on the other hand which are transforming the industry entirely by introducing smart insurance products.
Potential of blockchain technology and insurance are numerous, and the developments are quite promising. We are expecting to see interesting projects take place this year as the technology matures and gets more deeply adopted throughout industries.