The insurance industry has traditionally been slow to adopt new technologies , but it ' s finally happening with distributed ledger technology
DIGITAL TRANSFORMATION
The insurance industry has traditionally been slow to adopt new technologies , but it ' s finally happening with distributed ledger technology
WRITTEN BY : DERIN CAG
Insurtech companies are disrupting the traditional model to provide innovative services and offer customers better protection for less money . One of these disruptive technologies is blockchain , which companies like Etherisc and B3i are using to bring transparency , efficiency , and trust to the insurance sector .
As one of the newest trends in the field of insurance , blockchain offers many benefits to both consumers and insurers . While some startups are using blockchain to protect against real-world risks , others such as Lloyd ' s of London are using it to protect crypto assets .
Overall , blockchain insurance companies have the same aim ; to decrease costs for claims processing , improve customer experience by making information more accessible , and increase transparency between all parties involved .
In this feature , we look at a handful of ways in which blockchain is being used and trialled in the insurance industry .
Transparency and fraud prevention An advantage of using blockchain is its ability to provide financial records without having access directly from them . In this way , law enforcement agencies could see critical information relating back many years , all the way to the first purchase of policies . Hence , insurtechdigital . com 69