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Blockchain is to change the insurance market

Smart contracts are the great opportunity for blockchain technology use
Blockchain is to change the insurance market

According to the Ukrainian site https://ubr.ua/, the term blockade has recently been associated with speculation in the crypto-currency market, but the real revolution takes place in absolutely different directions. In 2018, according to the forecasts of IDC Health Insights, more than 20% of pharmaceutical organizations are passing into operational blockchain.

Let us remind that blockchain (chain of blocks) is a distributed database, in which the storage devices are not connected to the common server. This database stores a constantly growing list of ordered records, called blocks. Each block contains a timestamp and a link to the previous block.

In the insurance industry, a huge number of man hours are spent on studying and analyzing each insurance event. For an ordinary client, this turns into days even weeks of waiting for their insurance claim consideration.

Smart contracts are a set of triggers, software codes, which are activated when the circumstances that require insurance payments occur. Smart contracts allow save a significant amount of time necessary for insurance case analysis and prompt payments. Blockchain technologies provide a sufficient degree of transparency for customers, government and supervisory bodies.

According to the experts of the Ukrainian insurance company "Krona", the large-scale application of smart contracts in the global insurance industry will allow save over $21 billion each year. Such saving can be achieved by reducing number of personnel involved in processing applications and minimizing the overheads on lawsuits and claims from insurance company clients.

The blockchain technology use in the analysis of insurance risks of car owners will allow obtain an insurance product at the most affordable price in exchange for access to the history of fines, analysis of the driving style and other factors. Thanks to the blockchain technology, patient registers (data on patients of medical institutions) will be protected from hacking and falsification. If this information can be accessed, insurance companies can significantly reduce the cost of medical insurance policies for clients (because now the insurance company has to believe the client’s word and add the risks to the policy cost, or send the customer to the medical examination).

Source photo: http://vz.ua/tv/46768-blockchain-strakhovanie-i-krizis-doveriya 

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