This article was going to see the world a long time ago.
But as you know, it is dangerous to jump to conclusions.
So we at Fortifier decided we should understand what exactly is the main problem, become familiar with the technical and business processes, create a reliable solution, test it and only then share our experience.
And we did it!
Follow us through all stages of the process.
The insurance claim process consists of several stages, with each one having the potential to negatively impact client satisfaction.
Being able to integrate an easier method to the claims resolution process is what will guarantee a pleasant customer experience and earn each customer’s loyalty, thereby retaining the policyholder’s account.
I’m sure each insurer knows about this chain.
But how can we solve these problems?
The answer is a modern word – Blockchain. Why is it so popular?
Let’s start with the technical nuances.
When people talk about blockchains, at the broadest level, they mean a network of databases spread across multiple entities that are kept in sync, where there is no single owner or controller of the data. The databases tend to be append-only, which means new information can be added, but historical data can’t be altered without broad agreement from the participants of the network. A user or system administrator in one entity can’t alter data held on a blockchain without agreement from the other participants.
Historically, when multiple parties need to rely on the same data, we have used golden sources of data, held and controlled by trusted third parties. Blockchains can empower multiple parties to agree on events without needing the third party. Such is the promise of this new technology.
This term also brought about the advent of “smart contracts.”
Insured individuals typically find insurance contracts too long and confusing, while the insurance companies are battling an extraordinary amount of fraud. Thanks to blockchain and smart contracts, both parties would benefit from managing claims in a clear and honest way.
Blockchain technology verifies customers, policies, and transactions for authenticity. When a claim is submitted, the blockchain could ensure that only valid claims are paid. In order to work to its full potential, this would require extensive cooperation between insurers, manufacturers, customers, and other parties who would use the blockchain to share info to prove policies, purchases of products, verify police reports, and more.
Moreover, when certain criteria are met, a blockchain could pay the claims payment without any human intervention, thereby improving the speed of resolution for claims.
In addition, customers have a very real fear of losing control over their personal data. Blockchain provides a solution to drive efficiency and security that would allow personal data to be controlled by an individual while verification is registered on the blockchain.
Not only does blockchain offer the promises of cost reduction and greater efficiency, but it could also enable revenue growth, as insurers attract new business through higher-quality service. Can you believe that? In one recent PwC study, 56% of firms said they recognized the importance of blockchain, but 57% conceded they did not yet know how to respond.
All right, guys, time to make our move.
Everyone knows there’s a crisis of trust in the US financial services industry. Even though the large banks are the focal point, the problem of trust influences all businesses. Lack of trust, high costs and the inefficiency of the insurance industry all play a part in the extraordinarily high levels of underinsurance.
So know that every insurance company needs to take action today to figure out how blockchain technology can impact the way they do business today and in the future.
And of course, if you have any questions,
Fortifier Team is here.