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Blockchain Technology And Innovation In The Insurance Sector

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By Author: Block chain council
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Today's century is all about technology and its applications. You cannot imagine your life without technology. When we talk about the development in the field of technology then Blockchain has been one of the most positive moves, it is one development which has positively impacted almost all the business sectors. When we talk about its applications in different fields, then you have a number of them, one such field is insurance which can immensely benefit from Blockchain technology.

Why does the insurance sector need Blockchain?
Well, the simplest answer to this is that this sector lacks transparency; the processes are sluggish and time-consuming. With Blockchain we can have a solution for this. We know that Blockchain is equipped with features like :
Data security

All these features can solve the problems related to the processing of the claim.

Blockchain: A solution to many problems of the insurance sector
1. Fraud detection- As per FBI, the total fraud in the insurance sector summed up to $ 40 billion a year. When we talk ...
... about insurance fraud, then its not just the companies that face the brunt of it, but at the same time, it the people who face a loss of $400 and $700 in the form of increased premiums. The complexity of functioning of the insurance sector along with a lot of paperwork makes the problem aggravate. However, with Blockchain, we can find a solution for the same. The DLT can become a safe medium for data storage which offers instant access and no chance of data alteration. It leads to tor formation of a transparent and secure system. Thus, making the insurance claim process free from fraud.
2. Expediting the claim process- It would not be wrong to say that the insurance claim process is cumbersome and time-consuming. As per a report presented in 2017, 9% of medical insurance claims that amounted to $262 billion was denied. The intervention of too many intermediaries is one of the reasons for the delayed in the process. But, with Blockchain, we can find a solution for the same. Blockchain nullifies the need of having an intermediary, thus ensuring faster claim settlement, helping both the insurance company and the insurer.
3. Healthcare insurance- This is something that everyone must eye at, healthcare insurance has become very popular and is also susceptible to fraud. Cryptographically secure DLT ensures marinating privacy of patient's data and at the same time, gives access to medical data to patients and even insurers. The insurance provider can directly access the medical data from one data repository rather than hanging on to the different database; this saves time and also faster claim process. Moreover, the cryptographically secured process makes the data free from the reach of hackers.
4. Resolving the compliance issues- One of the key factors on which every insurance company will be sticking to is the stronger compliance process. Usually, insurance providers stick to their in0-house team rather than relying on the third party. But that doesn't always guarantee the right adherence. Since Blockchain offers provenance, it can resolve the tedious protocol and make the process faster while sticking to the modus operandi of the claim process.

To sum in simple words, we can opine that Blockchain is a probable solution which can make the insurance sector grow faster and better. There is a greater demand for such individuals who are well versed in this segment and hence companies like Blockchain Council is providing training for aspiring Blockchain stalwarts. The objective is to create a workforce that can revolutionize business functioning.



More About the Author

Blockchain Council is an authoritative group of subject experts and enthusiasts who are evangelizing the Blockchain Research and Development, Use Cases and Products and Knowledge for a better world. Blockchain technology is more than just a technology, which is emerging rapidly with a vast scope in the future. Blockchain acts as a financial network, software, distributed ledger, etc. Owing to this multitude of benefits and features, companies are now shifting their centralized and traditional working system to this trending and futuristic technology “Blockchain”. Blockchain council creates an environment and raises awareness among businesses, enterprises, developers, and society by educating them in the Blockchain space. We are a private de-facto organization working individually and proliferating Blockchain technology globally. Visit here for more details@https://www.blockchain-council.org/

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