For the past few years, insurtech (also Insuretech) has been reshaping the insurance industry. A recent report by McKinsey shows that investment into insurtech has increased yearly since 2017 and is estimated to reach $10.1 billion by the year-end. But, with the key technologies (social, mobile, analytics and cloud) having already been broadly adopted, blockchain looks ready to explode onto the insurtech scene. The global market within insurance alone is predicted to rise from $64.5 million in 2018 to $1.39 billion by 2023 - Accenture.
So has your business got a clear strategy for its technological future, or are you struggling to create and develop partnerships in these rapidly evolving times? At LifeHash, we understand the complexities of blockchain and have built our systems to make integration easy. By utilising existing blockchain, removing tokens, and introducing mobile technology, we aim to provide a blockchain solution for everyone, but first...
Blockchain is most commonly associated with Bitcoin and other cryptocurrencies. Yet, while blockchain does enable Bitcoin and others, it offers more possibilities than just financial transactions, especially in the insurtech world.
Blockchain is a decentralised record of digital transactions distributed between lots of different users and their computers. Unlike vulnerable conventional databases held on a centralised server, blockchain is decentralised, and no single entity controls the data. The records, or ledger, as it is known, is distributed between users who have access to one shared copy. And, because of this decentralised, distributed system, a majority consensus is required to change or update the ledger. In a network of thousands of individual computers, fraudulently obtaining a majority is extremely difficult and more likely impossible.
Another attribute of blockchain appealing to insurtech is that not only is the data distributed and decentralised it is also encrypted. Before entering a blockchain, information is converted using complicated mathematical algorithms into a string of characters known as a hash. This process known as hashing ensures that once data has been hashed, it is virtually impossible to decrypt it, and if even a single point of data is changed, a completely different hash will be produced.
The name blockchain is derived from the fact that data is stored in blocks. A block is only open for a fixed amount of time, and once passed, the block is verified by a miner and closed. Part of the process of verifying a block is to attribute it with a timestamp. A header for the block is created by combining this timestamp with the header of the current and previous block. This system of encrypted headers results in each block being linked in an unbreakable chain, hence the name blockchain.
The single source of truth that blockchain guarantees, along with solutions like smart contracts, enables signing, verifying, and exchanging contracts without involving a centralised third party. In addition to this, the speed and accuracy of data reconciliation is improved, providing an exemplary level of transparency, leading to more trust, efficiency, and ultimately more value. The benefits of blockchain to insuretech in terms of heightened efficiency doesn’t stop there; automatic, streamlined, truer business processes also assist in building genuine customer relations. Upgrading the claims process by optimising data transfer between client and insurer will inevitably decrease premiums, increase customer satisfaction, and improve customer loyalty.
A trustworthy, accurate, and auditable system to transfer data and interact with clients and stakeholders across different ecosystems will often be required as insurtech develops and extends its reach. Blockchain answers this call as the technology ensures never before seen levels of data security and accountability embedded within a universal platform that anyone can easily access with the correct key. Insurance brokers, vendors, reinsurers, partners and customers will be able to access and supply data. Unbridled by their own systems, collaboration will be easy and trust guaranteed.
Blockchain only stores the cryptographic hash value of your data, meaning the original piece of information remains yours. With no centralised server controlled by a third party, you are in control of what you share, when you share it, and with whom. This enables businesses to store detailed asset, contract, and data records without fear of expensive storage costs or security breaches. In real terms, P&C insurers can collaborate with insurtech to build complex usage-based models utilising information directly from customers, IoT and manufacturers. This will, in turn, provide accurate individual pricing rather than an estimate from an aggregate of historical data.
LifeHash harnesses the power of tried and tested blockchain from DigiByte and Bitcoin to remove the stress of investing in questionable tokens. At the same time, it gives us the ability to integrate administration structures into businesses that scale well even through rapid growth.
We use mobile technology to capture data from P&C claim reports, medical reports, multimedia, smart devices, emails, etc. and secure them at source. LifeHash reduces the opportunity for fraud and data theft while simultaneously offering the means to improve customer satisfaction, build trust and give your business a competitive edge.
The time for blockchain solutions is here; like the World Wide Web and cloud computing, blockchain will absolutely change insurance industry operations forever. Contact us to find out how we can help you embrace the blockchain revolution.
By integrating cutting edge solutions from Lifehash, insurers are insuring themselves for the long term. Would you like to learn more about how LifeHash can help you with your innovation objectives? Book a meeting with us.
Similar to Fintech, Insurtech is the term used to describe the emergence of technology adopted by the insurance industry to drive progress.
Distributed Ledger Technology brings unparalleled data security to the insurance industry, removing the need for third-party, centralised servers and their massive, vulnerable stores of data. At the same time, it allows for data to be shared in an open, accountable manner which inevitably develops trust.
LifeHash aims to simplify the complexities of blockchain to assist businesses in integrating digital ledger solutions by utilising mobile technology and existing, reputable blockchains, Bitcoin and DigiByte.
The effect of Insurtech is already being felt across the industry as a surge of investment takes place. Automated digital processes are being introduced to optimise data transfer between insurers, customers and stakeholders, allowing for a more connected, open and accountable industry.
Fintech refers to the technological revolution in the financial industry, the rise of online financial businesses like TransferWise, PayPal, Stripe and others has taken the industry to another level, insurtech is following suit in the insurance industry.