The potential of blockchain is proven. Also, the earlier perception of blockchain as limited to cryptocurrency is changing. Today, the technology is part of several industries. For example, industry observers always liked discussing what blockchain can offer for the insurtech sector.
Most experts are confident that blockchain will transform as the most critical trend for the blockchain sector in 2023.
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The insurtech industry can leverage the potential of blockchain to create a trust-based environment by enabling a diversified network with restricted access. Further, blockchain can also ensure sharing of secure and valuable data much more safely.
“So many insurers today are still slow to adopt this technology, but we are starting to see more and more companies create different proofs of concept and start to leverage blockchain in different ways. For example, a policy could be triggered via a smart contract without human involvement if you have a flood or high wind. If you meet all the parameters, you could be paid immediately through the blockchain,” says Marlene Dailey, senior financial services analyst at RSM US.
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Sharing access to a blockchain ledger allows insurers and re-insurers to access critical information, which makes the underwriting process more accessible and less tedious.
Eliminating manual involvement is the ultimate aim of the industry. Blockchain can be of great assistance in this regard. The technology can automate the entire range of smart contract-related activities, negating the need for human involvement whenever claims are processed.