Technology has grown leaps and bounds over the last decade and has seeped into almost every aspect of our lives. The multi-trillion-dollar global Vehicle Insurance industry is no stranger to technology as well. Thanks to the groundbreaking Blockchain technology, Motor Insurance is no longer the way we remember it. Now Motor Insurance companies are able to cryptographically secure all insurance related information in a safe and fool-proof platform of record keeping using Blockchain technology.
The Blockchain is a virtual peer-to-peer ledger that contains records, known as ‘blocks’ which are practically incorruptible. Each block has a time and date stamp and is linked with the previous block, thereby forming a chain, which gives it the name - Blockchain. Additionally, the entire Blockchain platform is self-managed and doesn’t require human intervention. This technology has several wide-reaching implications that will impact almost every business sector in the world.
If you want to buy a used car, you will certainly consider factors such as mileage, accident history, rust and other factors which would ultimately influence your decision. Similarly, insurance companies also check for such factors before calculating premiums and offering coverage. Unfortunately, many users and dealers try their best to present the car in the most flawless way possible. Hence, insurance calculations are often based on wild guesses and this results in a lot of false claims and frauds. Using Blockchain can take out the guesswork from the equation as it helps establish a reliant vehicle valuation system. As a result, all repairs undergone by the vehicle will be properly documented and shared with all active users. The Auto-Block is a state-of-the-art vehicle valuation platform that extends well beyond car buyers and sellers which is being widely used by Motor Insurance companies worldwide.
More often than not, making an insurance claim can prove to be a cumbersome task. At times, it may take months to process claims and secure reimbursements. Implementing Blockchain helps make the flow of information more transparent and uniform, making sure that everyone involved is on the same page. This drastically reduces the claim processing time and also simplifies payments.
When a transaction is carried out through a Blockchain platform, it is done through a smart contract. A smart contract is different from a traditional platform as it allows computers to regulate the ownership, management, and operation of a contract. Since Blockchain is regulated by computers, it is a safe way to ensure transparency in a contract and guarantees payment. Blockchain technology provides a decentralized platform in order to minimize mistrust between individuals, thereby eliminating the need for a third party like banks, registers, notaries, etc.
Adopting Blockchain technology by Vehicle Insurance sector will open up new avenues for several new types of insurance such as spot insurance, hybrid options, and shared economies. The possibilities are just endless.
By deploying innovative Blockchain technology, the claim settlement processes in Motor Insurance have drastically hastened. Get your vehicle insured with Finserv MARKETS to enjoy a flawless insurance experience!