Technology

How Blockchain and AI Will Impact the Insurance Industry

Industry 4.0 is going to change the way insurance businesses gather, store, and process data. Blockchain and AI will have an impact on the entire business cycle from insurance underwriting to claims processing.

Today, nearly a third of insurance customers globally are using solutions from insurtech providers, according to Capgemini Consulting. Over the past years, technologies have significantly changed the traditional insurance industry and will continue to do so. Particularly, Artificial Intelligence and blockchain technology will play an increasingly important role for both insurance companies and their customers.

READ: AI and Blockchain: The Future of the Healthcare Industry?

Claims processing: Blockchain-based data sharing and AI-supported data verification

Processing insurance claims is a slow and tedious process that is prone to error and relies heavily on data as well as the cooperation of multiple parties. In case of an accident, for example, the patient, his health insurance, healthcare providers, and potentially even law enforcement authorities need to exchange data. This communication can be inefficient and time-consuming.

Using blockchain technology, all involved parties can upload, view, and manage documents directly and digitally. Insurance providers can even automate claims processing using smart contracts.

The New York-based technology firm Lemonade combines blockchain’s smart contracts and AI technologies to immediately verify an insurance claim so a customer can get paid quickly. Paris-based Fizzy, a flight delay insurance tool that belongs to AXA, uses blockchain to ensure that members whose flights are delayed more than two hours are immediately compensated.

Asset tracking: Proof of ownership

Blockchain is already being used by many companies to efficiently track the proof of ownership of certain assets. Being able to prove ownership of an asset is paramount for many insurance policies, for example, liability insurances.

California-based Beenest, for example, offers homeowner insurance for property damage. The company is teaming up with WeTrust to develop blockchain-based insurance policies. Likewise, Zurich-based B3i has developed a blockchain prototype for property reinsurance contracts.

Fraud prevention: AI-based image recognition and blockchain-based data-sharing

Statistics suggest that insurance frauds steal close to $80 billion per year. The introduction of blockchain in insurance companies will improve collaboration among several insurance providers, making it easier to detect and prevent fraud attempts.

London-based Dynamis focuses on unemployment insurance. Policy applicants need to provide their LinkedIn profile to verify their current employment status. For those who are unemployed, the company’s blockchain will check the genuity of the claim through profile connections and issue insurance payments.

BlockClaim developed a hybrid artificial intelligence and blockchain solution. Their feature provides insurers with AI-powered fraud filtering and blockchain claim automation. An image recognition AI module automatically detects damage to vehicles in the event of an accident claim and validate whether it’s genuine or fraudulent.

Industry 4.0 will reshape the insurance industry

Blockchain provides a tool that enables secure, transparent, and cost-effective data-recording and data-sharing. AI can complement the insurtech suite by personalizing insurance policies, automating the underwriting process, and chatbots can realize a more customer-centric marketing approach.

Data is the centerpiece of the insurance industry. Many insurance companies have started investing heavily in both blockchain and AI and are already seeing results. As soon as the first pilots have been successfully implemented, it is only a matter of time until insurance companies start using blockchain and AI technologies on a large scale.

Tags

Lukas Hofer

Lukas J. Hofer is a business writer and has years of experience in financial services and international business. He has a proven track record working with leading international companies and currently works as independent business consultant in Asia.

Related Articles

42 Comments

  1. I got this web site from my friend who informed me about this web site and at the moment this time I am visiting this site and reading very informative articles here.|

  2. Thanks for this glorious article. One other thing is that the majority of digital cameras can come equipped with a zoom lens that permits more or less of any scene being included by means of ‘zooming’ in and out. These types of changes in {focus|focusing|concentration|target|the a**** length are reflected while in the viewfinder and on big display screen at the back of your camera.

  3. Thank you, I’ve recently been looking for info about this subject for ages and yours is the greatest I have discovered till now. But, what in regards to the conclusion? Are you positive concerning the supply?

  4. Obtén tus fichas de juego gratis y aprende rápido gracias al interface intuitivo. Obtén tus fichas de juego gratis y aprende rápido gracias al interface intuitivo. If you want to learn how to play Hold’em, then download the PokerStars software and join any of the free poker games where you can play online against other players. Unlike our real money poker games, since there is nothing at stake, you can be comfortable learning the ropes of the game and all the rules of Hold’em. We hope to see you in our poker room, and good luck at the tables! De todos los juegos de póquer, el Texas Hold’em es la variante de póquer más popular del mundo. Es tan popular que las Series Mundiales de Póker tienen un evento principal televisado cada año. Se juega con una baraja estándar de 52 cartas, normalmente se juega con 9-10 jugadores en una mesa (en GGPoker el número máximo de jugadores que tenemos es 6) pero se puede encontrar fácilmente con menos jugadores.
    http://www.hdjahwal.com/bbs/board.php?bo_table=free&wr_id=36721
    Legitimación: Prestación del servicio y consentimiento del usuario. Se dice que en la variedad está el gusto. Así que, para evitar que te aburras, nuestros casinos de ruleta online te ofrecen la más extensa gama de variantes de la ruleta para que juegues por dinero real o gratis. Desde las ruletas europea y americana hasta la ruleta en vivo o la ruleta multibola, descubre la mayor selección de juegos en nuestra lista de recomendaciones. Dentro de los diversos tipos de juegos de casino que encontrarás en William Hill existen unos específicos que acumulan premios o botes progresivos. Te ofrecemos las reglas básicas de los juegos de casino con botes pero te recomendamos que revises las reglas de cada uno de ellos en la sección Botes

Close