Applications for Blockchain in the Insurance Industry

The current claims process for property and casualty insurance (home, auto, commercial, etc.) depends mostly on manual entry, which is slow and prone to human error. The shared ledger technology that forms the basis of blockchain could be used to automate claims processing by triggering certain outcomes when various conditions are met.

Using blockchain shared ledgers could make claims processing up to three times faster and up to five times cheaper.

Smart Contracts
First there were e-signed contracts; smart contracts represent the next step in the tree-saving march away from paper contracts. “Smart contracts” can detect the fulfillment of conditions of the contract and then trigger certain executed actions when the right conditions are met.

A contract’s position on the distributed, decentralized ledger can also make it hard to falsify, although storing private contracts on a public-facing ledger is a legal knot that insurance innovators are still untying.
The current claims process for property and casualty insurance (home, auto, commercial, etc.) depends mostly on manual entry, which is slow and prone to human error. The shared ledger technology that forms the basis of blockchain could be used to automate claims processing by triggering certain outcomes when various conditions are met.

Using blockchain shared ledgers could make claims processing up to three times faster and up to five times cheaper.

Smart Contracts
First there were e-signed contracts; smart contracts represent the next step in the tree-saving march away from paper contracts. “Smart contracts” can detect the fulfillment of conditions of the contract and then trigger certain executed actions when the right conditions are met.

A contract’s position on the distributed, decentralized ledger can also make it hard to falsify, although storing private contracts on a public-facing ledger is a legal knot that insurance innovators are still untying.