Blockchain: a new era

The insurance industry is known to be traditionally bureaucratic and slow to adopt new technologies as it involves complex manual processes and many intermediaries.

This industry has been systematically investing in adopting and redesigning its IT systems, making them increasingly faster, more robust, but keeping business processes unchanged.

However, blockchain technology, particularly smart contracts, have the potential to transform this industry, bringing greater efficiency, transparency, and security to customers.

Smart contracts are computer programs that automatically execute the terms of a contract when pre-defined conditions are met. In the insurance industry, smart contracts can be used to revolutionise the current business processes by achieving full automation, cost reduction, and increased efficiency, which significantly improve customer experience.

One of the most useful applications of smart contracts in the insurance industry is curiously one of the most costly operations for insurers – claims management. With the use of smart contracts, it is possible to revolutionise the current processes and reverse the claim’s burden of proof. Nowadays, it is ensured by the entities responsible for issuing the documentation required by the insurer. By using smart contracts, customers are free from filling in forms, collecting documents, spending hours on phone calls, and so on and so forth.

In short, smart contracts have the potential to transform the insurance industry, creating a new era, bringing greater efficiency, transparency and security to customers. With process automation, fraud reduction, product customisation and reduction of intermediaries, insurers can offer more efficient services tailored to customer needs.