In the year 2009, Blockchain was invented as an infrastructure which is decentralized that thrives to enable new formats in the currency and exchanges between an infinite number of participants. Present requirements of Blockchain include government IDs, real estate transactions, employment contracts, insurance, selling music, payroll payments, and organizing elections (Tarr, 2018). Since the year 2009, over $1 billion has been invested upon. The Blockchain recently has been focusing on the insurance industry and this is due to the potentiality in order to improve identity verifications and claims settlement amongst other use cases. The Blockchain has the potential for modernizing, streamlining and simplifying the siloed design of the financial industry. The Blockchain is constantly evolving and extending beyond cryptocurrency with new use cases constantly emerging however questions remain regarding security and recourse for users.
Insurance Use Cases
InsureETH– Insurance relating to smart flight. This has resulted in the automated flight insurance payout for delayed flights and this event triggered further smart contracts. InsureETH concept was presented in London Fintech Hackathon, 2015.
Civic– gets $1 million identity fraud coverage free, for life use the Blockchain technology to secure consumer data and validate their identity in real time. There are several plans in order to allow consumers to approve credit card, bank account or loan application in real time before they are open (Gatteschi et al. 2018).
Dynamis– Dynamis uses disintermediation by using DApp and it is enforced into creating Ehtereum-based DAO for distributed P2P Insurance. It has also launched supplementary unemployment insurance; as a result, the small business can pay severance coverage for layoffs and resignations (Bocek et al. 2017).
Plex.Ai- Plex.Ai works as a real-time risk assessment in order to develop automotive telematics platform which to aim to provide usage of Ethereum, Artifial Intelligence and machine learning so as to provide insurance companies real-time, remote, diagnostic on a car and the driver (Gatteschi et al. 2018).
Participants in Blockchain Insurance
|USAA||The efficient potentiality is gained by investigating and adoption of Blockchain insurance.|
|Allianz||In order to boost and enhance CAT bond trades, the Blockchain are tested.|
|John Hancock||In order to show how Blockchain can reinvent the process of insurance, it is working on multiple POC.|
|Manulife||Wealth management operations are being tested by Blockchain technology.|
|LLYOD’S||For the reduction in the friction in Insurance Market, Blockchain technology is looked upon.|
|PINGAN||It has become the first Chinese Blockchain conference member of R3.|
|AIA||Became a member of R3 Block consortium.|
|Intrepid Ventures||A venture firm that focuses on Blockchain technology across Fintech and IOT|
|Dynamis||Developing Ehtereum-Based DAO for Distributed P2P Insurance|
|Chain that||Usage of Blockchain and other smart contracts on the insurance platform.|
|PLEX.AI||Telematics platform that uses Ethereum and AI for real-time car/driver diagnostics.|
|SmartContract||Self-executing contractual states, stored on the Blockchain.|
|EverLedger||Implements Blockchain to enhance restrictions upon Diamond larceny.|
|Civic||Blockchain-based identity solution to tackle the problem of consumer identity embezzlement.|
|LenderBot||A POV micro-insurance platform.|
Though Blockchain handles several inefficiencies yet it bypasses regulation completely in its purest form. Government and other administrative agencies may slow down and interrupts in the process of adoption by introducing new laws to monitor and to regulate Blockchain for compliance. Similar business models may elicit different reactions from regulators situated in different regions and countries. Singapore has laid special emphasis on Blockchain behaviours by proper identification, an authentication which is enabled by the Blockchain as a part of the strategic plans. The next steps which can be formulated by the Blockchain in insurance is to improve governance, check-ups and security, using of cases that go live and deliver the potential of Blockchain which needs to identify and verify. Blockchain configurations options one or more of public, private, conference, and having a governmental body.
Bocek, T., Rodrigues, B. B., Strasser, T., & Stiller, B. (2017, May). Blockchains everywhere-a use-case of blockchains in the pharma supply-chain. In 2017 IFIP/IEEE Symposium on Integrated Network and Service Management (IM) (pp. 772-777). IEEE.
Gatteschi, V., Lamberti, F., Demartini, C., Pranteda, C., & Santamaría, V. (2018). Blockchain and smart contracts for insurance: Is the technology mature enough?. Future Internet, 10(2), 20.
Gatteschi, V., Lamberti, F., Demartini, C., Pranteda, C., & Santamaría, V. (2018). To blockchain or not to blockchain: That is the question. IT Professional, 20(2), 62-74.
Tarr, J. A. (2018). Distributed ledger technology, blockchain and insurance: opportunities, risk, and challenges. Insurance Law Journal, 29, 254-268.