The insurance industry is a financial intermediary that plays a major part of the financial industry. Even though there has been a surge in purchasing and account insurances online, there is a huge part of the population that still prefers to take insurances through insurance brokers or visiting the insurance company personally. This results in the rise of paperwork and paper contracts which are prone to error and most often require human supervision. In short, the insurance involves consumers, brokers, insurers and sometimes even reinsurers – which results in a potential failure of loss of information, misinterpretation of policy and delay in settlement.
To cut these losses, giant insurance companies are switching to Blockchain technology. Why will the Blockchain technology help the insurance industry for the better? Blockchain is the ideal technology that can store records and data cryptographically. It helps build transparent operations built of trust and stability. According to a report in The SAP Digital Transformation Executive Study, the banking and the insurance industry is planning to double up their Blockchain investments by the year 2019. The industry wants to transform and streamline their processes via Blockchain and mitigate the challenges faced while data sharing, claim processing and frauds.