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How Blockchain will Change Insurance for Good.

Do you want to learn how to disrupt a long established industry? Believe me; it is simpler you think. Of course, you’ll need a genuinely innovative and revolutionary technology by your side. In particular, R3, the enterprise Blockchain Platform, is already winning big in the Blockchain Insurance sector, with a head-start over other DLT providers.

Blockchain Insurance; how to Achieve Privacy in a System Forked From Public Networks.

For most Insurance firms considering Blockchain, Privacy in a system forked from public networks, was the deal breaker. But, wait, there are far more significant benefits to creating a public Blockchain insurance system than there’re any concerns over the privacy, or lack thereof, of the system. Remarkably, Blockchain Insurance networks will use a proof of Insurance scheme, whose primary goal is to weed out the uninsured, especially motorists.

In addition to that, these Insurance platforms hosted on Blockchain will provide efficient data sharing means. Hence, the time is taken to notify an insurer when a policy-holder is filling a claim reduces. What’s more? Furthermore, with regards to subrogation, the pursuit of the other party in an accident will change for good. Besides, insurance compensation too will change, emphasizing a blockchain-based net settlements. Also, parametric insurance, which pays claims automatically, might use smart contracts for fast and precision payments.

But, this is all theory. What about a timeline? As is stands, everything is already in progress now. Specifically, before the end of this year, the first Proof of Insurance, and Notice of loss will be filed.

Validating Blockchain Insurance Projects.

Have you heard of the RiskBlock Alliance? In detail, this is a consortium of insurance companies such as Marsh, Chubb, and Liberty Mutual. Specifically, this is a combined effort to explore the application of R3’s Corda platform in the insurance sector.

On the other hand, B3i, a European reinsurance consortium, alongside R3, account for all significant Blockchain Insurance Consortia. And another thing, both are Corda users, B3i recently switch to Corda from Hyperledger fabric. Similarly, the Insurwave marine insurance platform, which is a joint venture by EY and Maersk, is working on a similar platform.

But leading the race to create the ideal decentral Insurance platform is RiskBlock, which officially launched in mid-2017. The Institutes, which is an insurance research and education network, is behind the RiskBlock project. The last two years of the consortium has been spent on test enterprise Blockchain solutions. After narrowing down their list of solutions to Quorum (by J.P. Morgan Chase), Hyperledger Fabric, Corda, and Digital Asset, the team settled for R3’s Corda.

Conclusion.

In essence, the race to the best application of Blockchain for the insurance market is attracting many insurance heavyweights. Hence, with this surplus of funds for research and development, disruption of the insurance sector might be around the corner.

Last modified: July 30, 2019

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