Blockchain Technology Applied To Insurance: Society is witness to ever more incredible technological advances reflected in the most diverse sectors. And that is also in the insurance field, where blockchain technology has burst onto the scene for some time. It is time to familiarise yourself with this term and how it works.
How Blockchain Works
Before learning how blockchain works, you must travel back to the early 1990s. Then, this invention came to light, the work of Stuart Haber and W. Scott Stornetta, which is based on a chain of cryptographically secured blocks. In 2008 it became popular with Bitcoin.
Currently, its development is linked to other economic fields, such as business and finance, where it is becoming increasingly important. And it is not surprising, given the guarantees it confers. Blockchain Technology Applied To Insurance
The blockchain is a unique record of operations organized by nodes, which has been agreed upon by the different parties involved and cannot be modified unless all agree. The node brings together exact copies of various transactions or records and links to the immediately preceding node and the following node, forming a chain. Therefore, its position is immovable, and it is content unalterable. Blockchain Technology Applied To Insurance
And what is its most significant benefit? Well, it improves the transparency of the operations carried out on the network since no one can delete a specific record with information about a contract or a sale. There is no possibility of committing fraud.
Blockchain And The World Of Insurance
This new technology also plays a decisive role in the world of insurance. Experts predict it will move around 1,400 million dollars in the market by 2023, showing a percentage increase of more than 80% each year. Blockchain Technology Applied To Insurance
Its most significant potential is linked to smart contracts or intelligent contracts, based on a computer code that helps verify and fulfil the contract automatically. In this way, a third person (or a human) intervention is not required to ensure compliance. The fact that this insurance contract and the information it contains are stored in a node does not put its confidentiality at risk since this data will not be revealed if not necessary. Only the parties that signed it are responsible. Blockchain Technology Applied To Insurance
One of its most significant benefits is the possibility of accelerating insurance procedures, including the necessary procedures in the event of an accident. Consequently, the paperwork in which this type of situation usually results is reduced, and the customer experience improves considerably. And this can also improve by applying reductions in the premiums derived from the savings and simplifying the processes that this new technology entails. Blockchain Technology Applied To Insurance
The truth is that blockchain technology can translate into different advantages for you. Start enjoying them by taking out life, home or any other type of insurance.