Inefficiencies in the commercial insurance industry and employee benefits sector poised to improve by embracing a new blockchain solution.
What is blockchain?
Blockchain is a distributed ledger of digital transactions that allows everyone on a network to see updates in near real-time. These transactions are time stamped and neatly assembled into connected blocks of data to create a chain of events that can be traced back to the very first transaction. The participants in a network, not a central authority, verify that the transactions are valid. When all these features are working together, this technology enables a peer-to-peer network to exchange value. While these features build peer-to-peer connectivity, they also offer benefits to improve commercial insurance management.
How blockchain can benefit the insurance sector?
Historically, integrating customer data has been a complex challenge for insurers. Insurance companies face several challenges, including complex compliance issues, limited growth in mature markets, fraudulent claims activity, third-party payment transactions, and handling huge amounts of data. Smart technologies, like blockchain, allow for the simplification of authentic data integration, which can effectively lower costs, save time and improve data quality. Blockchain can reduce fraudulent claims activity, improve the documentation of certificate/policy detail, reduce administrative costs through automated verification of claims/payments data, organize claim flow activity, and increase process efficiencies, among other things.
A recent article by Daniele Presto, Senior Managing Director at Accenture Insurance, cites an example of how Accenture and Generali Employee Benefits (GEB) implemented a blockchain solution for the employee benefits industry. Because blockchain technology can create a more connected ecosystem among stakeholders, a reliable, integrated channel to exchange information is established. This is specifically relevant to the insurance industry, as blockchain’s capabilities streamline manual insurance processes. The result in the case of GEB means that participants in the reinsurance process for captive or pooling services can access the same data, in real-time, across the business. This is what blockchain can do. To read the article, please click here.
What can you do today to reduce your insurance cost?
For questions about how you can reduce insurance and employee benefits costs for your organization or high net-worth individuals, please visit cmr-associates.com or drop me an email at email@example.com.