Saturday, 15 September 2018

Blockchain To Form Basis For Next-Generation Insurance Offerings

Insurance Blockchain To Make Business More Trustworthy

Blockchain technology is almost everywhere and now insurance blockchain is also making a lot of waves. Savvy investors are already investing billions in the research and development of this technology. Latest studies reveal that around $1.3 billion capital is being invested in blockchain ventures and startups in 2018.

Coming to the insurance sector, the complexity of the industry has really discouraged the consumers from investing in its products. Only a very small plurality of consumers now trusts the insurance companies which can be a big threat for the industry in the years to come. That is where blockchain-based solutions can make a huge difference.

A French multinational insurance group, Axa SA is now coming up with Fizzy blockchain technology– a based insurance product that will offer consumers parametric and automated insurance policies. The policies will provide insurance coverage to airline flight delays by adding the policy to the blockchain ledger platform in the form of a smart contract. The blockchain supported system monitors, the global flight data in real-time. In the case, a flight is delayed by two hours or more and it will eventually trigger an automatic payout.

This evolving insurance blockchain technology eliminates the human element, and thus, the trust equation is automatically nullified. Incidentally, once the variations for the exact deployment of this system are formed, then it would lead to the next-generation insurance offerings. According to Benzinga, blockchain is already making a big progress at all the fronts in the insurance markets. That is why legacy insurers are now coming up with more automated and exacting products using blockchain as the base.

According to Lexology, blockchain is a new technology in the insurance sector that serves as an incorruptible digital ledger keeping a virtual record of all the transactions and data. Since blockchain can store and maintain a large number of records and data on its decentralized platform including electronic cash and physical assets as it is becoming extremely popular among the insurance companies.

The post Blockchain To Form Basis For Next-Generation Insurance Offerings appeared first on OWLT Market.



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