fbpx

US Insurance Giants Collaborate to Settle Payments with Blockchain

Asia Blockchain Review
June 16, 2019

USAA and State Farm, two major US insurance firms, have reportedly announced their partnership on developing a blockchain platform to expedite the settlement of auto claims.

Subrogation Use Case for Blockchain

When an accident occurs that involves more than one party and the parties are represented by either of the companies, the liable company will use a blockchain solution to settle the inter-company payment in a process called subrogation.

“Today, subrogation is a manual, time-consuming process often requiring physical checks to be mailed on a claim-by-claim basis between insurers,” said Mike Fields, Innovation Executive at State Farm. “In 2018 alone, the total amount of dollars issued through the subrogation process was over $9.6 billion.”

According to Forkast News, the claims amount to billions of dollars a year, an immense volume of transactions that blockchain technology can settle in minutes. The advent of stablecoins and clearer crypto regulations have renewed interest from traditional institutions.

Blockchain Enables Efficiency and Secure Transactions for Insurance Industry

USAA and State Farm believe that the new system will save time and costs for both companies.

“The blockchain solution we are working on has many potential benefits,” said Ramon Lopez, Vice President of Innovation, USAA. “It helps us automate a manual process securely and creates a permanent transaction record of each payment which can easily be verified for accuracy. It also has the potential to decrease the amount of time for consumers to receive their deductible reimbursement.”

State Farm made its blockchain project public last year, but USAA was not included in the announcement. Now, the partnership has been made official.

Source: https://forkast.news


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
Quadrant Protocol Brings Data Subscriptions to the Blockchain through its Data Smart Contract
Data Smart Contracts officially launches after a two-month pilot period that saw over 27 million eQU...

July 17, 2019

TOMOB Trading Competition on Binance DEX
To celebrate the event of the BEP-2 TOMO token (TOMOB) listing on Binance DEX, TomoChain is rolling ...

July 16, 2019

Lumi Wallet Adds EOS Exchange
Lumi Wallet App now supports the exchange of EOS tokens directly within the app

July 14, 2019

Suntec Gears up for Blockchain Summit 2019
Blockchain Summit is the largest, dedicated Blockchain Event Series in the world. Taking place on Au...

July 11, 2019

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