[ad_1]
Insurance is one of the golden geese of the blockchain, an industry with a lot of paperwork, sensitive data and manual processes that seems almost obvious that it will eventually adopt blockchain technology to simplify complaint processes, the storage of data and even – at the end – its payments. State Farm is among the first major insurance companies to announce that it is studying such a move regarding the payment process of requests.
In insurance, the subrogation is when an insurance company establishes a debt with another. According to a recent State Farm statement, among their multiple blockchain initiatives is what they believe has the potential to improve their surrogacy process. They have an operational solution that they are currently testing against existing processes, which they describe as inefficient, requiring more than a few man hours, manual issue of checks and other twentieth century methodologies.
"State Farm is working on a blockchain solution that could accelerate the surrogation process for automatic complaints, and the company is testing the solution against the existing surrogacy processes to determine if it can be a viable product for the insurance industry. and bring value to customers. "
Even if an insurance company had exactly zero requests over a period of time, the cost of insurance would still be relatively high due to the number of employees who are required to work on a single case. You need a regulator, an accountant, a customer service specialist, a salesperson, and so on, and everyone can only deal with so many customers in a given period of time. Effective use of insurance policies increases costs, but it is not something that can ever be brought to zero or anywhere. However, the cost of processing requests and the speed with which they can be managed are things that technology, particularly blockchain technology, can contribute greatly.
State Farm also expresses the desire to be a leader in space, writing:
"State Farm is working with another insurer to understand how a business blockchain solution can be used to reduce the time it takes to complete the subrogation process by securely and automatically completing all subrogation payment amounts, offsetting the balance and facilitating a single payment on a regular basis among insurers. "
The part of the complaints process concerned is the last step. Prior to that, there are other opportunities for blockchain, including secure tracking of customer behavior, secure archiving of records and, at a certain point, payment systems and potentially some form of good behavioral credits . The entire insurance industry is ripe for blockchainization, as well as much of the medical system with which it works intimately.
"The blockchain solution we are working on […] it helps us to automate a manual process in a secure manner and creates a permanent transaction record of every payment that can easily be verified for accuracy, "concluded Mike Fields, Executive Innovation Innovation Farm." It also has the potential to reduce the time that consumers receive for their deductible reimbursement ".
Shutterstock foreground image
Get an exclusive cryptographic analysis by professional traders and investors on Hacked.com. Register now and receive the first month for free. Click here.
