The insurance industry is arguably one of the sectors that stand to be a great beneficiary of blockchain technology. With characteristics of an immutable ledger, real-time tracking, and a single version of truth, it is ideal for the future of the insurance industry.
Current concerns for insurance companies are the large amounts of fraudulent claims or inaccurate information in the system. The immutable ledger will be able to trace every transaction and incident to be able to ascertain what is valid and invalid. At the same time, it will be able to prevent the duplication of records.
Another benefit of blockchain is the speed at which it operates. With blockchain technology able to process claims up to three times quicker than the current process and at a much cheaper rate, there are benefits of its introduction to all parties in the process.
The introduction of blockchain can also bring new products to the industry. For example, when combined with smart sensors which monitor the transportation of goods, there can be a clearer picture of what has caused the issue, such as a drop in temperature ruining a product.