Blockchain: The Rocket Fuel for Renovating the Insurance Industry

1. Blockchain: The Rocket Fuel for Renovating the InsuranceIndustry • The insurance industry falls behind when it comes to familizaring itself with the core functionalities of blockchain technologies. In fact, it's a popular belief that unlike other financialservices,itdelaysleveragingtechnologytorevolutionizeitsbusinessprocesses. • It's essential that the insurance sector evolves if it hopes to meet the demands of the ever increasing techno-savvy customers. It's high time it effectively streamlined its businessprocesses. • Breaking Down TheChallenges • There are a series of challenges that the insurance industry currently faces whic h can be aided by the effective implementation of blockchain technology. In addition to it's late adoption of technology innovations, the industry struggles in a variety of areas suchas: • Maintaining CustomerRelationship • Customers are on the lookout for fast and convenient customer service where their needs are acknowledged, understood and addressed. This builds customer loyalty and reduces churn.

2. Offering BespokeCover • The emergence of new insurance startups ready to offer bespoke solutions to niche players has proven a challenge forexisting players in the industry. • Managing IndividualRisks • It's a challenge for agents to create and stick to frameworks that would focus on individualrisksbecauseofthelackofmaintenanceandaccesstoproperdatabase. • Increasing DigitalTransactions • The swift rise in digital transactions is proving a challenge for the late adopter insurance industry. • FraudulentClaims • Blockchain helps track any changes made in the data right up to the source – this makes itanexcellentresourcewhenitcomestotrackingandverifyingfraudulentclaims. • Evolution In MatureMarkets • Blockchain helps streamline processes, increases speed, productivity and makes database management swift and easy. This leaves the organization scout for a larger market share by reaching out tountapped audience even in mature markets. • Maintaining Transparency In BusinessOperations • Blockchain is a public ledger designed to store information which records the changes madetothesourceeachtimetheinformationstoredisalteredinanyway. • Blockchain’s ability to provide complete accountability, transparency and exce ptional securitywillhelpinsurersovercometoday’schallengesanddeveloptransparent • operations built on trust andstability. • Additionally, the sudden spurt in digital transactions, fraudulent claims and evolution in mature markets have left many insur ers wondering how to restructure processes while safeguarding sensitiveinformation. • “The global average cost of a data breach is up 6.4 percent over the previous year to $3.86 million. -IBM • That is why insurers need a potent solution to manage heavy data interactions between multiple contributors including insurers, brokers, reinsurers andend -clients. • Insurance Industry Needs BlockchainBecause... • Blockchain’s additional security and capability to establish trust between multiple entities are the reason it can help solve the system's compatibility problems. This makes it a moreeffectivesolutionthantheexistingsystemstheinsurancecompaniescurrentlyuse.

3. Moreover, interoperable and comprehensive insurance records on the blockchain can be sourced directly from various locations like hospitals, government offices or automobile providers. These records are currently stored within a single provider system. Usi ng blockchain, insurers can upload the information to a shared blockchain. In case, the insured individual needs that information, he can track the details from the shared ledger through blockchain. Blockchain To TheRescue Blockchaincan bethesolutiontoahostofissuesplaguingtheinsuranceindustry today. This unique technology can be effectively leveraged in a variety of ways to disrupt the insurance industry for thebetter. Practical Uses Of BlockchainTechnology Complete Secure PlatformSolution Thankstoitsuseofpublicledger,blockchaincantheoreticallyeliminatesuspiciousand identical transactions by categorizing each transaction. Blockchain’s decentralized digital repository lets insurers verify the authenticity of customers, transacti ons and insurance policies by providing historical data. This process makes it tougher for hackers to corrupt and steal data and stop fraudulentactivities. Watchdog For Third-PartyTransactions Blockchain allows insurers to handle increased third-party transactions and claims made using personal digital devices. This advanced technology helps in reducing administrative tasks and cost through automated verification of claims and payments processed by third parties. Insurers can quickly view past claim transaction history registered into a block for instant procedures. This way blockchain endorses a high -level of trust and loyalty between the insurer and thecustomer.

4. Smooth Management Of HugeData It's a daunting task for insurance companies to manually ha ndle a huge log of data. Blockchain technology allows insurers to easily manage, share and monetize this data. The core benefit of blockchain where static data can be stored without central co - ordination which can be then be viewed by the stakeholders – makes it a radically powerfulresource. It uses existing data and stamp by creating a digital signature/fingerprint which adds another layer of transparency and security. This streamlined data can further optimize the effort and time needed for accurate riskcalculations. Smart Contracts For SmartIndustry: Policy contracts are a major part of the insurance industry. Blockchain helps convert these contracts into personalized contracts. These contracts connect real -time data and activities from multiple system s including documents to accurately execute processes like claims and reimbursements with speed. See how our team has built value for the insurance sector with a disruptive Blockchain-basedsolution. Data Accuracy For BoostingReinsurance Blockchain can offer accurate renewal calculations based on current contracts within the reinsurance domain. This helps a variety of insurers who wish to know the available balance upon payment of claims. Advancements of blockchain ensure that they rebalance their disclosures against specific risks. This acts as a great source of motivation for insurance companies once they b egin to reap the benefits of smooth business operations on a dailybasis. The good news is that several insurance companies have already begun to embrace the advantages of blockchain applications. Enterprises like Allianz, Aegon, Swiss Re and Zurich have initiated the B3i (Blockchain Insurance Industry Initiative) for those who intend to explore the potential of blockchain technology toserve clients. Soon, the world will witness a change in the insuran ce where traditional insurance service providers and entrepreneurs will come together to exchange value and information through blockchain so that everyone can take benefit and enjoy the true potential of blockchaintechnology. Cygnet Infotech is proud to be at the forefront of leading this innovation through its bespoke blockchain solutions for insurance industry. Reach one of our experts today if you would like to know more about leveraging this unique, hassle -free technology for yourbusiness-callon+1-609-245-0971orwritetousatinquiry@cygnetinfotech.com.