Blockchain based insurance

sahar78 (72)in PussFi 🐈 • 5 days ago

Assalamualaikum

Greetings to you all!

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Blockchain technology is transforming arrange of industries which include insurance also.When I have a look at blockchain based insurance then it is used for leveraging distributed ledger technology for the purpose of enhancement of transparency ,safety and efficiency. This is one of the most important development approach which is streamlining different processes, helpful in reducing different costs and in improvement for overall experience of customers.

When I talk about conventional insurance systems then there are multiple challenges which this type of systems have to face like manual process, lacking transparency and high cost of administration etc. processes of claiming could be slow and there can be chances of arising of disputes because of unclear or less precise terms of policies.

There can be multiple benefit that we can obtain from blockchain based insurance in which first of all there is Enhance of transparency and building up of trust, automation of claiming process,reduction of administration cost and improvement about safety of information as well as at last increase in the over all engagement of customers or users.

Smart contracts are helpful in playing most significant role in blockchain based insurance as these are contracts which execute itself so they can helpful in automation of claiming process, elimination all reduction in requirements for any kind of intermediary or intermediate entity. Small contracts are helpful for giving surety of clarity and reduction of disputes in policy terms.

There are some of the decentralized insurance platform like lemonade which are used for giving leverage to blockchain for providing a more peer to peer insurance and these are some of the platforms which helps in connecting policy holders with investors in a direct way, by making significant reduction in costs also.

There are multiple use cases of blockchain based insurance in which first of all there is property and casualty insurance, after that there is health insurance, Life insurance, re insurance as well as micro insurance fall under these categories. Blockchain based insurance are useful for enabling and automated process of claiming by the use of Smart contracts which as a result or as an outcome can streamlined the process by making significant reduction in processing time and costs.

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Blockchain technology is used for giving sorting that information or data is secured by strong encryption methods and decentralized storage of information. There are policy holders which make sure that information which is sensitive will remain secret or confidential as well as information which is sensitive cannot be approach by any kind of unauthorised access and hence it is protected from all these things.

When I talk about regulatory compliance here then blockchain based insurance platforms should always have a very strong level of compliance with regulatory need as well as their regulators also which are signed to search out or exploring different methods for accommodation of blockchain based models of insurance.

Blockchain based issurance have multiple benefits but some of the challenges despite of the benefits also remains in which first of all there is regulatory uncertainty , after that there can be issues related to scalability, there can be lack in awareness from users or customers as well as different complexity is related to integration is also a challenge.

Blockchain based insurance future seems to be very promising because with the passage of time technology is growing which is clearing regularity compliance and due to this adoption is also expected to enhance. It was all about blockchain based insurance brief introduction, some of their benefits some of their challenges as well as a very brief about future Outlook......