Blockchain Enters the Insurance World

Blockchain Enters Insurance

Whilst, it is early days in the mainstream usage of Blockchain by corporate business, the Insurance & Banking industries are beginning to embrace blockchain technologies. This is good news for software developers residing in the app development division within these industries. There is a good chance that the next career move will involve tinkering with Blockchain and learning some highly transferrable new skills.

So, why is Blockchain interesting to a traditional industry such as Insurance? Insurance companies are struggling today with many internal difficulties. Datacenters are filled with huge quantities of data, and despite pouring large sums of money into Big Data IT departments have barely scratched the surface of this problem. Claims management remains very labor intensive and fraudulent claims cost insurance companies billions of dollars each year. Many, digital competitors have arisen in recent years and these new age insurers are looking at new ways to automate traditional processes, enabling them to deliver highly cost-efficient products.

Blockchain, by no means solves all of these problems, but it does introduce some interesting features into the Insurers arsenal. First, and foremost Blockchain provides a highly scalable, decentralized means of managing data. Additionally, Blockchain is incredibly secure and provides built in protection from data tampering. Smart contracts are also of great interest to insurance firms as they allow software development teams leveraging this technology to create programs that automatically perform specific actions based on pre-determined criteria. An example of this could involve a commercial insurance contract where a specific compensation figure is due to the policy holder when the air temperature outside of a commercial building reaches a quarterly average of -5c. The developed software application in this case would monitor a set of publicly accessible weather measurements with certain parameters triggered the completion of a smart contract in Blockchain, resulting in an automatic bank transfer to an end customer. Using this example, it is easy to see the attractiveness of Blockchain within the Insurance industry, with many Singapore based app development companies having begun to develop and launch similar products within this sector.

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