The applications of Blockchain are not limited to cryptocurrencies alone. They are instrumental in various aspects of business - one of them being insurance.
A highly practical advantage of blockchain is found in smart contracts. These automated contracts have the potential to completely and positively alter the processes involved in insurance. It is common knowledge that manually handling insurance claims, paying of premium, weeding out fraudulent claims, and other related processes can be time-consuming. Blockchain smart contracts are self-executing and can, therefore, provide insurers with a convenient way to simplify these arduous tasks, by digitizing and automating them.
Some of the major ways blockchain, especially smart contracts, can transform the insurance business are:
* Eliminates the need for paperwork
With all the automation involved, smart contracts eliminate the requirement for any paperwork. This is a major benefit as generally, paperwork pertaining to the insurance sector is not brief. Enabling processes to take place digitally can give both the insurers and the insured some peace of mind.