HAIDRUN USE CASES
Blockchain in Insurance
A catalyst for new approaches
Insurance is a business of detailed, confidential data collection. It is an industry of risk management, contract execution and third-party payments, yet it is often error-prone and occasionally fraudulent. Validated information is the cornerstone of this sector and trust is core to the credibility and functioning of the digital economy. It would appear to be an industry looking for an elegant technology solution to solve the challenges and seize the opportunities. This is where Haidrun comes in. Our B2B blockchain provides a platform for the insurance industry to deliver security, trust, transparency and accuracy.
Insurance companies face ever-increasing compliance, mature markets with more competitors, fraudulent claims, and third-party payments. The common factor in all of this is huge amounts of data and with an ever-growing number of connected devices capturing real-time information, the sheer volume of data is growing further. Insurers must select and scrutinise the key information that matters, to evolve from a financial-loss-compensation mode to one of physical-risk prevention.
To compete effectively with market disruptors and deliver competitive products and services, you must have visibility and trust in your data. Furthermore, the path to digital transformation has left many insurers wondering how to streamline processes, improve the security of sensitive information and reduce costs. Given that many analysts agree around five to ten percent of all insurance claims are fraudulent, it makes storing, trusting, and handling data ever more vital.
Haidrun B2B blockchain technology can help overcome these challenges and create secure, accurate and transparent operations. Although adoption is at an early stage, some insurers are already leveraging the technology in the following ways:
Immutable data: Blockchain technology eliminates suspicious and duplicate transactions by securely and chronologically logging each transaction. Once verified, using an advanced consensus algorithm, and then cryptographically sealed into data blocks, the transaction is immutable. You can then verify the authenticity of customers, policies, and transactions by providing accurate, secure, and transparent historical records, for instance in an audit situation.
Smart contracts: Enterprise blockchains can store business logic in dedicated smart contracts. They connect real-time information from multiple systems, physical documents and activities, which can then trigger processes like claims, payments and reimbursements faster and with greater accuracy. You can save time and money and give your customers a much better service.
Re-insurance: Accurate reserve calculations based on current contracts provide insight into how much money is available as claims are paid. Haidrun B2B blockchains provide a secure, decentralised database, whilst overall control remains with authorised personnel. This delivers highly accurate data to help re-insure and rebalance exposures against specific risks and in tandem with AI, for predictive risk modelling, will provide a far greater degree of surety.
There are countless use cases for blockchain in insurance and many global consulting and research companies agree that the insurance industry should make investments now to take advantage of the efficiencies and opportunities blockchain technology can deliver long term.
Choosing the right blockchain technology platform
Some insurers have already started investing in blockchain technology although first-generation blockchains had limitations of privacy, scale, speed and interoperability. Accenture reports that the global market for blockchain in insurance is expected to grow to over a billion USD by 2023. As a starting point to help insurers save time and money now, as well as improve customer satisfaction, a permissioned blockchain will provide the accountability, transparency and greater security needed, whilst still retaining control. The required platform must also be flexible to grow and integrate with all the other systems and platforms you have already invested in. Haidrun B2B blockchain is a fully scalable and interoperable enterprise platform that efficiently meets these challenges and addresses immediate and ongoing opportunities.
As well as insurance, other sectors including healthcare, telecoms and manufacturing are finding valuable use cases for business blockchains to upgrade insecure and costly databases, payment platforms and digital systems. You may be surprised to find that some major enterprises have already started to incorporate blockchain, including Walmart, Pfizer, AIG, Siemens, and Unilever. But others have held back, waiting for more secure, cost-effective B2B blockchain platforms. We have developed the Haidrun B2B blockchain platform specifically to meet these enterprise challenges.
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