Challenges faced by the insurance industry
Regulation
Sensible regulation benefits the industry, but insurance companies can struggle to update their business model and processes to meet the demands of multiple ever-changing regulatory regimes.
Opaque data usage
Concern about how data will be harvested, used, stored, and transferred is endemic in data-reliant businesses like insurance, with consumers and institutions alike wary of handing over their information.
Skills shortages
Highly-skilled insurance professionals are in short supply, and many insurers struggle to recruit. Simultaneously, talented individuals find it difficult to enter the profession and to secure employment.
Lack of innovation
While other industries have been revolutionized with entirely new products and services, the insurance industry has largely offered the same products and in the same ways, missing out on opportunities and new markets as a result.
Unmet expectations
Customer expectations are now conditioned by instant-access, always-on services delivered online; they expect to buy insurance the way they buy everything else: frictionless, rapid, and convenient.
Lack of trust
The insurance business has acquired a reputation for obstruction and refusal to pay out, as well as for opaque policies and business practices. The public no longer regards insurance as real protection (as per B&FT Online).
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Get expert adviceBlockchain solutions for insurance from Aetsoft
Enhance consumer trust
Offer consumers a fully transparent decision-making process, so they can see for themselves how payouts are defined and make sure the process is fair and reliable.
Data transparency
Blockchain allows you to create an accessible ledger of customer data; alternatively, you can grant them access to complete records of data sharing and usage.
Skills markets
Decentralized databases of skilled professionals and organizations seeking talent can automatically identify and connect good matches — all while remaining safe and traceable.
Innovative products
Reach out to new markets with modular and customizable products, utilizing tokenization and smart contracts to create new ways of offering insurance to businesses and individuals.
Enhanced customer journeys
Match and exceed customer expectations, offering fully automated workflows that let new customers explore options, sign up and manage their insurance with the user experience they expect and the security they need.
Regulatory compliance
Business models can be adjusted to remain compliant across jurisdictions using smart contracts, which can also be used to automatically meet auditability and record-keeping requirements.
Blockchain applications in insurance
Use case 1. Fast claim verification
Currently
Data distribution across databases hardens due diligence of insurance claims, making their collection a more lengthy process than it could be — with the right tools at hand.
With blockchain
Provide a single database for insurance-related assets — bills, payment and tax receipts, and others — to instantly access them all at once whenever required.
Use case 2. Digital property insurance
Currently
To get insurance, you need to go through a tiresome procedure with piles of papers to fill in and then waiting for their approval and verification.
With blockchain
Blockchain-enabled smart contracts significantly cut the time required for insurance; paperwork, application, validation — all automated.
Use case 3. Instant claim notifications
Currently
In travel insurance, contingencies, like trip cancellation, baggage loss, or flight accidents, involve different types of notifications, yet all of them are susceptible to downtime and delays.
With blockchain
Blockchain is a universal tool that enables real-time alerts on any force majeure; get updated in an instant!
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