This article is about Technology

How the insurance field targets Blockchain

Paulo Menzzano

Published at
19 de May de 2020

The insurance field is currently experiencing a moment of reflection and transformation with regard to its business model.

The digital era has changed consumer habits and the introduction of insurtechs (Insurance Technology Startups) in the market have challenged traditional companies to search for modern and disruptive alternatives. One of them is the blockchain.

Blockchain is a record and data platform that can be distributed and shared. It creates an index to all transactions executed in a specific market. Some define it as a public, shared and universal ‘accounting ledger’. And more importantly: it is extremely reliable.

It helps to identify fraud as it provides a safe identity storage for each person and a safer way to carry out transactions. It also generates revenue increases, lowers response time and lowers costs, creates simple transaction monitoring, and lowers operational costs and risks.

It is no chance occurrence that the platform has called the attention of different markets and presented significant growth. According to data disclosed by IDC consulting, world expenses in blockchain solutions will reach US$ 2.1 billion in 2018. This is more than double the US$ 945 million registered in 2017. Furthermore: the estimate is that investments will increase steadily until 2021, totaling US$ 9.2 billion.

Because of this, blockchain is being targeted by the insurance company market, which represents another force in our national economy. According to the Insurance Company Confederation (CNseg), the insurance market has exceeded R$ 1.2 trillion in assets in 2017.

This makes it a strong ally.

Blockchain is a safe way to register contacts as it eliminates intermediate parties and its records are inviolable, unchangeable and decentralized. It can offer great help in claiming processes, from notification to payment. It also expedites insurance and risk analysis related to policy admission.

It can assuredly strengthen the field. This is made very clear in an article I have recently read on Kevin Wang’s technology portal, from Plug and Play Insurance, the vertical branch of the Silicon Valley seed accelerator Plug and Play Tech Center.

He states that blockchain has the power to move through new and existing insurance models, including peer-to-peer (P2P) insurance and computer network architecture, in which each of the points or network knots of the customer and server will enable service and data sharing, with no need for a central server.

These specific P2P insurance platforms, according to Wang, can start to use smart agreements to establish complaints and arrange demand between consumers in an on-line market, settling several current issues by transferring digital assets or accessing private data.

There are many alternatives the insurance market is considering for its own transformation and the future points towards a more agile and accurate field, with innovative characteristics to service new economy consumers who are eager for a customized service. The Resource team is aware and prepared to support its customers in this journey, simplifying this challenge with technology, experience and expert consulting.

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