Starting from banking
The banking industry was the first to recognize the potential of blockchain technology, followed by others. Currently, it is increasingly used in the insurance sector.
In 2018, a B3i consortium was even created, associated companies such as AIG, AIA, Allianz, Aegon, and Swiss Re.
It is focused on creating blockchain-based solutions for the insurance industry. One of them is the B3i Reinsurance application (B3i Re), which is used to conclude and manage contracts.
What can blockchain do for the insurance industry?
Blockchain technology can bring many benefits to the insurance industry. First of all, it has a positive effect on the level of security during data processing and simplifies the claims handling process. It also contributes to greater effectiveness in detecting insurance fraud and promotes the introduction of new insurance products to the market.
Data Security
The security of the processed data appears to be of utmost importance in the context of the use of blockchain technology by insurance companies. This is due to the fact that as part of their activity, they process it in large quantities, and very often what is called sensitive data. Therefore, attempts to take over them by cybercriminals are quite frequent.
This is favored by, among other things, collecting most of the data in one place, for example on a single server. Therefore, Decentralized blockchain technology makes them much more difficult to steal. What’s more, it also prevents modification of data by third parties, which further increases the level of security. However, it must be emphasized that neither blockchain nor any other technology can guarantee complete security.
As security evolves, hackers find more and more ways to attack. However, this does not change the fact that Decentralized systems are slowly becoming the standard, both in the insurance industry and in many other areas of human activity.
