The years 2018-19 are the banner years for the US$ 5.17 trillion global insurance sector. However double-booking, counterfeiting, and premium diversions through unlicensed brokers still throb insurance companies. And one of the prime reasons for such unethical activities is the lack of tight coupling between stakeholders. A simple solution to these challenges is distributed ledgers- a contemporary technology that ensures transparency. Distributed ledger technology in insurance can create a collaborative environment for handling information, minimizing instances of fraudulent activities.
How Can Distributed Ledgers Accelerate Insurance Workflows?
Where most insurtech startups and small insurers are looking for “insurance-in-a-box” technology, big players demand bespoke technology to develop distinct capabilities for customer convenience and manage their enterprise workflows. Fortunately, distributed ledger technology solves a major chunk of this problem.
For startups and small to medium size insurtech firms, cloud-based, customizable workflow management products can simplify the processes and create a collaborative work environment. Large enterprises can, of course, afford time and investment for tailor-made technologies suitable for their overall business requirements.
Smart contracts can automatically determine whether to transfer an asset to the nominee or back to the source, or a combination of both. It does not necessarily create a co