Blockchain technology brought change in insurance industry to enable anyone invests and therefore receive a share of the money generated by the insurance. Blockchain insurance therefore prevents or rather eliminates insurance fraud which is the one of the bugbears of the industry, leading to higher premiums and worse coverage for consumers. Fraudulent insurance makes securing data more crucial for insurers.

Blockchain technology limits the number of challenges the insurance companies face such as, limited growth in mature markets, fraudulent claims activity, third party payment transactions and handling huge amounts of data.

Blockchain beneficial in the insurance industry;

• Fraud detection and risk prevention: Blockchain  can help eliminate common sources of fraud in the insurance industry. This can be achieved by moving insurance claims onto an immutable ledger. Blockchain technology can also save insurers the expense of paying for public and subscription data to prevent fraud. Blockchain technology enables the insurers to record permanent transactions, with granular access controls to protect data security. The public distributed ledger would help insurers identify suspicious and duplicate transactions across the ecosystem.
• Property and casualty insurance:smart contracts on blockchain can bring an order of magnitude improvement in efficiency to property and casualty insurance. Blockchain technology enables automated real-time data collection and analysis, this saves the insurance company time and money while providing the customer with a better experience. Smart contracts can change paper contracts into programmable code that helps automate claims processing and calculates liabilities in insurance for all involved using blockchain.
• Big data:Blockchain technology can properly manage, share and monetize large amounts of data. The technology can store static records and/or data without central coordination and the data can be viewed by all users.
• Health insurance:medical records can be cryptographically secured and shared between health providers with blockchain technology to help increase the interoperability in the health insurance ecosystem. Another significance of Blockchain technology in health insurance is the ability to encrypt patient information, facilitating the transfer of information while still protecting patient privacy
• Reinsurance:blockchain technology can simplify the flow of information and payments between insurers and reinsurers simply by securing reinsurance contracts on the blockchain through smart contracts. Detailed transactions around premiums and losses can exist on an insurer and reinsurer’s computer systems at the same time using blockchain technology. Reinsurers can process and settle claims more quickly without relying on primary insurers for data around each claim.

Blockchain insurance industry aims to explore the potential of distributed ledger technologies to better serve clients through faster, more convenient and secure services in that it is transparent and immutable. With blockchain technology, insurance companies can stop taking on too much risk and going bankrupt.