Robert Clark is the founder and CEO of Theft detailsA leading provider of insurance information solutions.
Fraud. An indefinite threat to the insurance industry for decades. However, the appearance of AI has excited insurers about potential ways to significantly reduce the deliberate claims. However, another technology that is also powered by clean data can be even more promising, and this is blockchain. Specifically, smart blockchain conventions. Think of Blockchain as taking it “As a Good Neighbor” of State Farm on another level. Built with the foundation of the ground confidence, blockchain can promote stricter relationships between the insured and the insurer.
With any insurance transaction that serves as a block in the chain as part of smart contracts, an insurance customer who wants to commit fraud will be automatically challenged by a series of automated audits scheduled for contracts specified by the insurer. These challenges can be based on AI and Bi trends that extract from the fraud trends available through open source insurance data.
Depending on the quality of data transactions data, automation to process legal claims and stopping the impartments claims could be faster than today’s AI supplies.
If a customer wishes to take the risk and perform a fraudulent activity, then the insurer could automatically repair the customer or cancel the coverage, ensuring the optimum integrity of the blockchain without requiring much human interaction.
The insurance score
This type of frame for future insurance could also make some insurers more attractive to customers than others. What will happen if the insurance industry applies a worldwide acceptable “trust” rating that automatically evaluates the quality of the insurer’s blockchain network?
The higher the rating, the better for businesses. This type of trust rating can also be applied to the insured. If one is submitting a fraudulent claim, instead of losing insurance, their personal trust ratings will be reduced, which would affect the cost of insurance. Think of this idea as a fico rating for insurers and the insured, powered by open source data and blockchain.
An exciting example of blockchain that allows for confidence rating comes from the food industry. Walmart and IBM worked to create the Food confidence solution Blockchain initiative that monitors the origin and source of food. Blockchain detects every step that food products take through the supply chain in a book. This encouraged food suppliers to provide fresh, safer, higher quality products driven by data transparency.
The possible value of the macro-backed frames
Transparency of a blockchain network could allow insurers to experiment more with new types of coverage for more dangerous situations for more reliable customers-such as taking emotion holidays.
This automation could also allow insurers to spend more time off -linking better customer relationships. For example, instead of cutting off a client who has eagerly introduced or incorrect entrances to fraudulent information, the insurer could personally arrive to discuss the situation, offering the customer the opportunity to make a mistake.
An insurer could also offer a new tips service powered by blockchain and the open source of Data Insights to activate customers on ways to avoid situations that require claims. Having a smart and personal conversation with an insurance consultant informed by Blockchain could be a new difference for insurers than just the best AI application. This puts the burden on insurers to have great people first, then good technology, not just looking for ways to sprinkle AI at all and reduce costs.
With the embrace of this type of open source blockchain frame, insurers can confidently deal with a world where unpredictable natural or anthropogenic disasters seem to happen more often.
Instead of running away from a state or city, an insurer can create a specialized open source blockchain for a particular area with a higher third -party risk data, information on the available natural resources to support recovery from disasters and potential fraud. This information could be used to provide customized parametric insurance contracts during certain periods of the year, when these types of situations are more likely to occur.
What’s going on
The biggest challenge in the way of this kind of future is the way insurers see the importance of the relationships of workers and their customers, along with the way they approach the application of emerging technologies.
Many times, technology has made our world smaller. However, this is certainly not the case for the insurance industry. Technology makes our industry bigger and, unfortunately, often less personal.
Utilizing the blockchain frameworks and a possible confidence rating for insurers and the insured, the industry could boost its commitment to people, not keep up with Joneses’s PR announcements.
Unlike other articles on insurance and blockchain, I do not believe that this approach means that you are eliminating intermediaries (ie, personal insurance). I believe that this approach could be a primary example for other industries on how to rejuvenate and elevate traditional roles that should not be outdated.
The building blocks are already here: Data, Advanced Analytics, Blockchain, AI. Now, it is up to the industry to build not only a more effective system but a more reliable and human.
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