Blockchain Enables Faster Settlement of Insurance Claims

Blockchain technology is revolutionizing the insurance industry in many ways, including enabling faster settlement of insurance claims. Traditionally, insurance claims can be a lengthy and complex process that can take weeks or even months to settle. However, with the use of blockchain, the settlement process can be significantly accelerated, reducing the time and cost involved for both insurers and policyholders.

Blockchain technology can streamline the claims process by providing a secure and transparent platform for storing and sharing claims data between insurers, policyholders, and other stakeholders. By leveraging blockchain technology, insurers can automate claims processing, eliminate manual errors, and reduce the risk of fraud.

Here are some examples of how blockchain is being used to enable faster settlement of insurance claims:

• In 2017, IBM partnered with AIG and Standard Chartered to develop a blockchain-based smart contract platform for the marine insurance industry. The platform uses blockchain technology to automate the claims process and enable faster settlement of claims. By storing claims data on a blockchain, insurers can verify the authenticity of claims data and automate the verification process, reducing the time and cost involved in claims processing.
• In 2018, AXA launched Fizzy, a blockchain-based flight delay insurance product that automatically pays out claims to policyholders in the event of a delayed flight. The smart contract is designed to trigger a payout when flight data stored on a blockchain indicates that a flight has been delayed for more than two hours. By automating the claims process, AXA can provide policyholders with faster and more accurate payouts, reducing the time and cost involved in claims processing.
• In 2020, Swiss Re partnered with Allianz and Munich Re to develop a blockchain-based solution for the aviation insurance industry. The solution uses blockchain technology to store and share data between insurers, policyholders, and other stakeholders, enabling faster and more accurate claims processing. By streamlining the claims process, insurers can reduce the time and cost involved in claims processing, providing policyholders with faster and more accurate payouts.

Conclusion

Blockchain technology is enabling faster settlement of insurance claims, providing policyholders with more accurate and timely payouts while reducing the time and cost involved for insurers. By leveraging blockchain technology to automate claims processing and provide a secure and transparent platform for storing and sharing claims data, insurers can streamline the claims process and reduce the risk of fraud. As the use of blockchain technology in the insurance industry continues to grow, we can expect to see even more innovation in claims processing, ultimately leading to a more efficient and cost-effective insurance industry.