Blockchain has grown to be way more than just a tech underpinning cryptocurrencies. It is opening up transformative business opportunities, even in industries that are notorious for resisting change.
And for good reason. Blockchain offers data security, reduced transaction costs, increased efficiency, trust, transparency, fraud prevention and data provenance. It’s no wonder that many businesses are already rising to the occasion with exciting use cases, even though full-scale adoption remains elusive.
Here are some of the startups spearheading the adoption of blockchain in the insurance industry:
Tradle
Founded in 2015, Tradle leverages a blockchain-based framework to bridge the gap between consumers and companies. Its applications span multiple industries.
In insurance, Tradle is focused on know-your-customer (KYC) procedures to build worldwide trust and enable faster allocation and access to customer data. After the KYC data is verified on the blockchain, it would be easily accessible by other authorized companies, eliminating cumbersome data entry and verification processes.
See also: Blockchain’s Future in Insurance
RiskBazaar
This is a platform that facilitates true peer-to-peer risk contracts to enable the affordable and efficient transfer of risks on a global scale. With the current insurance system, you have to purchase an insurance policy by sending your funds to the insurance company, which takes care of your money until you make a claim.
With RiskBazaar, however, there is no single insurance policy or agency. You send your cryptocurrency to a digital lock-up box, whose key is then assigned to multiple (two or more) people. Upon agreement, the other parties can unlock the digital box with these keys, and, if you make a valid claim, you receive the compensation from the newly unlocked box.
Essentially, anyone in the world can become an insurer, and the person can’t take off with the funds because no single person has full control over the box.
Etherisk
The German-based insurance company is applying the Ethereum blockchain to create insurance apps. In 2016, it demonstrated the concept with an experiment that allowed people to obtain flight delay insurance cover that pays out automatically.
See also: The Problems With Blockchain, Big Data
SafeShare Global
This is the first company in the world to launch a blockchain-based insurance solution that satisfies the needs of a shared economy. It allows private homeowners to rent out an extra room. Through blockchain technology, the system provides a time-stamped, immutable record of insurance in real time and at significantly reduced costs.
The insurance industry is but one sector set to feel the effects of the rising blockchain technology. Take a look at the infographic below to learn about many other industries that are benefiting from its attributes.
You can find the infographic here.
You can find the infographic here.
