While most of us don’t like to pay for an insurance, the truth is that in some cases they can be quite helpful, especially when you need to deal with an unexpected occurrence.

Even though most people still tend to associate blockchains to banks or financial institutions, the truth is that blockchains can be used by every single industry without any problems. So, today, we wanted to show you blockchain in insurance use cases so that you can see how it can work.

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The truth is that we can’t already say even if blockchains will be regulated and allowed to be used with insurances. Nevertheless, we are about to show you different blockchain in insurance use cases that have a lot of potential.

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#1: Blockchain In Insurance Use Cases For Fraud Detection And Risk Prevention:

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One of the main complaints of insurance companies are the frauds that some of their customers commit. However, just take a look at a simple example that shows you how the use of a blockchain would detect fraud.

Imagine that there is a diamond jeweler that files a complaint with his insurance company that his diamonds were stolen. Then, he makes new certificates for that diamonds and he tries to sell them again, as new. With the information the insurance company has right now, they won’t be able to determine if there is a fraud or not. However, if they were using a blockchain, they would have registered every single characteristic of the diamonds and the fraud would be automatically detected.

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#2: Blockchain In Insurance Use Cases For Property & Casualty (P&C) Insurance:

When you drive a car, you know that you can have an accident. It’s normal. So, let’s say that you got into one recently but the fault wasn’t yours; the other driver was at fault. So, in normal circumstances, you need to submit a claim to your insurance company to recover the loss and the other driver needs to do the same with his own insurance company. Then, your insurance company will need to examine your claim, get the claim from the other driver, and finally return you the loss you had. However, not all insurance companies use the same systems or process claims in the same way. This means that this process can be very tedious and you may end up receiving a lot less than you should. With the implementation of a blockchain, the system would be the same and the exchange of the information between the two insurance companies would be immediate.

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#3: Blockchain In Insurance Use Cases For Health Insurance:

Health-insurance

Let’s imagine that you just broke your arm and you need to see an orthopedic surgeon. In order for the surgeon to get all the information he needs to fix your arm, he needs to speak to your primary doctor and to the person who first assisted you at the hospital. After getting all the documents he needs the surgeon will still need to request the authorization from your insurer and submit a claim. The truth is that this is a very tedious process once again and the risk of getting the wrong data about you is very high. However, with the use of blockchains in insurance, all the risks would be avoided since all the information about patients would be gathered in the same place. In addition, it would be faster for the surgeon to access all your medical history and get in touch directly with the insurer.

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