IMPACT OF BLOCKCHAIN ON INSURANCE INDUSTRY

Source

The insurance industry is a major sector that plays vitally in global economy by making available to users protection financially and also managing risk of individual, Businesses and government. And are faced by digital challenges such as cyber security and Globalization

The Blockchain technology has the capability to transform the insurance industry in a way that would benefit the industry in various ways that can enhance it productivys stability and accountability

We would be looking at ways that the Blockchain technology originally made for Bitcoin has now been a game changer in mode of operation for a lot of industries including the insurance industry... the Blockchain being a decentralized and transparent has a lot advantages it can offer and solve the inefficiencies and challenges in the insurance sector.

WAYS BLOCKCHAIN IMPACT THE INSURANCE INDUSTRY

Well the insurance company being a company that needs offers financial protection to individuals.are faced with transparency and trust issues.. The Blockchain on the other hand offer a primary benefits in it ability to promote Accountability and trust between the two parties involved which is the insurer and individual or businesses which in turn improve the mutual relationship.

The Blockchain ensures the transactions and policy of the industry are done and recorded on an immutable ledger.making both parties have access to information..hence reducing dispute and improving trust
In the firm

Another major concern that influences the insurance industry ability to perform is Fraudulent activities.. blockchain being decentralized in nature becomes the main tool an insurance industry can employ in combating fraud in the system as all transaction are done and recorded on a ledger visible to the Public.. making altering of past records impossible without being detected... this feature hence enhance the overall risk management of the system

For the insurance industry to surpass their current productivity level there is need for reinsurance done more efficiently in less time because the reinsurance process , where an insurer sends a fraction of it's portfolio to the other party can be very tiring, complex and time consuming.

Blockchain on the other hand have a feature that makes the complex procedure or process simple by providing a record or receipt of transaction policies and claims to both parties ensuring that they have a constant view of the data reducing the time associated with reinsurance thereby increasing the efficiency of the system

CONCLUSION

Blockchain is one technology that offer the transformative feature the insurance industrial sector needs to improve on its accountability ,efficiency,fraud challenges as the which has began to evolve continues it is likely that the insurance industry productivity grows thereby improving it outcome and contributions to both the insurers and individual and even the society at large

Thank you everyone for taking your time to go through my blog...till we meet again.