TECH & AI

governments are piloting blockchain across various sectors , for more efficient and secure public services

as per the contract recorded immutably on the blockchain ledger . This makes it impossible to forge any records .

The most common smart contract a typical person might use is related to decentralised finance ( DeFi ) platforms . These platforms allow users to engage in financial activities such as lending , borrowing , and earning interest on their assets without the need for traditional banks or financial institutions . For instance , platforms like Compound and Aave use smart contracts to automate these financial services , making them accessible to anyone with an internet connection .

Many insurers are applying a smart contract alongside blockchain , which is triggered when well-defined terms and conditions are met . According to Jim Bramblet , by setting up an insurance contract that pays out under these circumstances , an insurer can process transactions with no human intervention and greatly enhance customer service .

In other words , blockchain technology can enable insurers to capitalise on digital opportunities . By implementing

blockchain , insurers can streamline the subrogation process , which involves settling claims between insurance companies . Additionally , blockchain facilitates a more transparent claims process by providing an immutable and verifiable ledger , ensuring all parties have access to the same information , thereby reducing disputes and accelerating resolutions . Insurers can also leverage shared loss histories stored on the blockchain to gain data-driven insights into prospective customers .

This access to comprehensive and accurate data allows for more sophisticated and precise pricing models , benefiting both insurers and their clients . Furthermore , blockchain supports more efficient payments between insurers and third parties , especially during the claims process . By automating and securing transactions , blockchain reduces delays and errors , ensuring timely and accurate payments . Overall , blockchain technology can transform the insurance industry by enhancing efficiency , transparency , and data-driven decision-making .

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