Insurance titans and start-ups alike are endeavouring to use blockchain for insurance to thwart fraud, digitally track records, and more.
Insurance has existed for millennia. One of the first documented loss limitation methods was noted in the Code of Hammurabi around 1750 BC.
While technology has permanently changed entire industries over the past decade, in many ways the multi-trillion-dollar global insurance industry is still stuck in the past.
Stuck in the past
In spite of the rise in online brokers, countless consumers still call insurance brokers by phone to purchase new policies. Policies are often managed on paper contracts. As a result, claims and payments are error-prone and often require human observation. Compounding this is the inherent complexity of insurance, which consists of consumers, brokers, insurers and reinsurers, as well as insurance’s main product: risk.
Every step in this collaborative process signifies a potential point of failure in the overall system, where data can be misplaced, policies misunderstood, and settlement times drawn out.
The power of blockchain for insurance
Enter blockchain technology, a cryptographically secured form of shared record-keeping. While blockchain has been subject to extreme hype, its true killer applications are likely to be in some of the most antiquated fields. It has the ability to be a transformative force for industries like insurance, which require the coordination and cooperation of many different intermediaries with different motivations.
Applications include fraud detection and risk prevention by moving insurance claims onto an immutable ledger; property and casualty insurance, where a shared ledger and smart contracts can bring an order of magnitude improvement in efficiency; health insurance, where medical records can be cryptographically secured and shared between health providers; and reinsurance, by securing reinsurance contracts on the blockchain through smart contracts.
ShareRing
ShareRing is built on distributed ledger technology. Transactions are secure, fast and immutable because data is managed by a network of publicly controlled nodes that confirm the data is true and correct. A decentralised system means your data is immutable. With no central point to be exploited, the system is protected against hacking and fraud. See: ShareRing Me.
ShareRing’s blockchain technology has attracted the attention of Dhipaya Insurance, partly owned by the Thailand Government and the largest travel insurance provider in Thailand. Dhipaya will offer travel products through the ShareRing app and backend system. See: the three verification levels inside the ShareRing Vault.
This is a major partnership and one of the first movers in blockchain adoption for the trillion-dollar insurance industry. Overcoming the regulatory and legal hurdles required for such an agreement is a true testament to the potential of ShareRing’s blockchain technology. See: Thailand ETDA Phase 2 framework.
Where we sit.
ShareRing has been building this technology since 2018. The encrypted Vault and self-sovereign ID model we put in the original whitepaper are the same architecture under everything we deploy today.
If you want to discuss privacy KYC at country scale, the door is open at sharering.network/contact.
By ShareRing Team of ShareRing.
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