Insurance Industry and Block Chain Technology: An Analysis of Opportunities and Challenges

Abstract

Blockchain is incorporated into our distributed platform design as a system service to facilitate the execution of transactions in insurance procedures. The insurance sector is highly reliant on several procedures between parties engaged in a transaction for opening, retaining, and closing various types of policies. Our view of data management and security has undergone a paradigm shift as a result of the emergence of blockchain technology. Blockchain technology is essential to the insurance industry for optimization of claims processing and policy automation, resulting in lower costs and greater efficiency. Additionally, the ability of blockchain to increase transparency and reduce fraudulent activity promotes credibility and trust between the insured and insurer. This paper explains how the insurance sector might profit from blockchain technology investments. We review the fundamentals of blockchain technology, major platforms currently in use, and offer a simple explanation of the insurance sub-processes that blockchain might enhance. This paper also discuss about the challenges that must be overcome for blockchain solutions to be completely adopted in the insurance industry.