Insurance Industry Keen on Blockchain Applications

Asia Blockchain Review
January 3, 2020

Blockchain has multiple applications for a more secure and efficient way of preventing fraud and tracking records, with many insurance companies adopting the decentralized, peer-to-peer technology for purposes such as payment and data access by the insured.

Transforming Outdated Functions Using Blockchain

Due to its immutability, blockchain has seen increased adoption in the insurance industry. Once a piece of information is added to a distributed ledger, it cannot be altered. In order for changes to be made in one block, they must also be made to all the subsequent blocks associated with the affected block.

Insurance giants have therefore been deploying blockchain to streamline outdated tasks that are typically subject to fraud, human error and cyberattacks. In 2015, Anthem Insurance revealed a data breach that resulted in the theft of over 37.5 million records containing sensitive personal information from its servers.

Blockchain represents a potentially transformative force for insurance, an industry that has many intermediaries coordinating and cooperating with varying incentives.

Smart Contracts for Safe and Reliable Transactions

In recent years, insurance organizations have begun experimenting with blockchain and distributed ledger, with insurtech companies leading the charge. These include German insurance giant Allianz, which has been working on a token-based blockchain system that facilitates international insurance payments for its corporate customers.

Insuring companies can use smart contracts to ensure safe and reliable transactions without the involvement of intermediaries. Insurance policies can also be written as coded, decentralized smart contracts for which the insured agree to pay premiums to the insurance company for coverage.

Source: cointelegraph.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us