Blockchain for Insurance
The general public is currently captured by Bitcoin particular and other cryptocurrencies. Blockchain technology is developing very fast. Blockchain is much more than a cryptocurrency – it is a data structure that enables the creation of a digital ledger of transactions and the ability to share them among a distributed network of computers. This technology should be used where there is a need for more transparency for example in the insurance areas. Blockchain enables network participants to make changes to the ledger securely, in the absence of a central authority.
By using the blockchain ecosystem the insurance companies can improve significantly. The insurance industry is highly regulated, but this regulation does not bring real benefits to customers mainly because regulation is aimed to keep control over insurance companies for governments, to improve customers’ experience and to limit costs. Decisions and rates of insurance companies are not transparent currently, but by using Peer–to–Peer technology everything will soon be transparent and with the voting systems everyone on the network can have a say over the spending of money.
The blockchain technology is a decentralized and open–source platform and everyone can make changes on the platform. The blockchain will open new opportunities for new players on the insurance market. It will also create jobs and make the insurance products fair and affordable for everyone. The storing of claims and customer information on a blockchain would cut down fraudulent activity.