[ad_1]
State Farm has announced that it is testing blockchain technology to simplify the subrogation process for automatic complaints.
The subrogation is the last part of the compensation claim process, in which an insurance company recovers the costs it has paid to its client for damages caused by the at-fault portion. State Farm explained that it is working with an insurance partner to test the blockchain solution against existing processes.
"Today, subrogation is a relatively manual process and it often takes time for physical checks to be sent by post to insurers," said Mike Fields, innovation executive, State Farm, in a press release. "You can imagine the time and resources needed to complete these transactions."
The company will test the blockchain solution to find out if it can potentially reduce the time it takes to complete the surrogate process by completing all payment amounts, offsetting the balance and facilitating a single payment on a regular basis between insurers.
"The blockchain solution we are working on has many potential advantages," said Fields. "It helps us to automate a manual process securely and creates a permanent transaction record of each payment, which can be easily verified for accuracy, and also has the potential to reduce the time it takes consumers to receive the deductible reimbursement."
A company spokesperson told CoinDesk that about $ 11 billion of credits were transferred due to last year's subrogation, with $ 750 million related to claims for private passengers. The spokesman added that blockchain could reduce the risk of errors in the processing of a complaint, as well as decrease the number of paper checks sent by one insurance company to another.
The test will take place in the first half of 2019. Innovation manager Dustin Helland noted that "the results of the test, together with other factors, will be taken into account to decide whether or not to launch the solution in the adoption. of full production ".
[ad_2]Source link
