As technology evolves at lightning speed, the opportunities and challenges are limitless for the insurance industry. Every day, journals publish articles on how new technologies can help insurance companies solve or integrate this problem. There are so many possibilities; Sometimes it seems easier to do just enough to make ends meet. This research applies the method of creating a conceptual framework with blockchain and smart contracts to applications in insurance. Its main goal is to use blockchain and smart contracts to ensure secure and fraud-free insurance transactions. This framework includes customer registration, policy issuance, and reimbursement processing activities using blockchain technology, making the entire insurance system more robust. The main contribution of this proposed system is the implementation of blockchain technology in the field of all kinds of insurance processes. It also involves the use of a specific consensus algorithm (in this case: proof of authority) in the system and the detailed algorithm and the explanation of the whole process. Smart contracts are not a mature technology, but it is clear that the wider use of blockchain is already changing custom insurance software.
With smart contracts, insurers can automate their policies and services, reduce administrative and claims processing costs, increase transparency and prevent fraud. Intellias supports innovative efforts and is ready to help implement blockchain technology and smart contracts in particular. The following insurance companies are leaders in implementing registry technology. Test. Smart contracts must be deployed on the blockchain network to work. However, this can lead to some difficulties in testing. Automotive testing is a good solution. By emulating a real-world environment, automatic tests check whether a smart contract is working as intended. Protect policy documents. Insurers can store policy documents in many registries, making it virtually impossible to lose them. Thanks to their technical characteristics, smart contracts prevent data loss and corruption. Use.
Now it`s time to deploy the smart contract on the Ethereum blockchain so that everyone can use it. There are specific tools to speed up deployment, but in general, engineers have to send the contract code to the blockchain, where the transaction waits to be extracted. After the dismantling of the contract, it is considered to have been supplied. What they do: Dynamis is a peer-to-peer insurance company based entirely on the Ethereum blockchain. What they do: Lemonade combines AI and distributed ledger technology to offer tenants and landlords insurance starting at $5 and $25 per month, respectively. According to Capgemini, the use of smart contracts in the auto insurance industry worldwide could result in annual savings of $21 billion. This is due to the benefits of using smart contracts for insurance, such as automating processes and reducing overhead in claims processing. Transactions on the blockchain remain as a chain.
To get it as a printed list output, here is a transaction block in Figure 9. The list itself is an array of transaction block objects. The first property is its index number. Second, there is the previous hash property, one of the most important concepts in blockchain technology. The proof here is the proof of authority (PoA). There is a timestamp property that indicates the time the transaction took place. Next comes the transaction table. This is the combination of the above information and customer-agent information as well as the amount of the transaction cost. Finally, the list contains the appropriate policy data for that particular transaction block. As well established and valuable as it is, the insurance industry has many problems, including inefficiency, fraud, human error and, most importantly, cyberattacks.
In 2015, Anthem Insurance revealed a data breach that exposed the sensitive data of 78.8 million customers. In addition to the incalculable losses resulting from identity fraud, the entire industry suffered $375 million in damages. Design a token. For the creation of smart contracts, the Ethereum network allows users to develop their own tokens to perform certain functions. The trick is to correctly determine which functions to perform and which business logic to include. In some cases, some articles did not mention or talk about their consensus algorithm. This document briefly explains the consensus algorithm as well as its configuration file and diagrams. Proof of authority has been used here, making it unique when it comes to being used in an environment like this. There are articles in the table that didn`t talk about their internal features workflow. Here in this article, the algorithms of the corresponding features are very targeted.
The organizational chart and use case of the system are briefly explained in this document. One article talked about the vulnerability of smart contracts. On the other hand, this article resolves the confusion with the use of the proof of authority algorithm. In addition, it is considered a completely new framework. The other documents were domain- and domain-specific, while this paper focused on a generalized approach to all types of insurance. Regardless of the industry, there are four phases in the lifecycle of a smart contract: Real Use Case: FideniaX recently developed ISLEY, a blockchain-based digital ledger for insurance policies. ISLEY gives customers a complete overview of their insurance policies, notifies them when their premiums are due, and displays an immutable record of your entire policy history. Smart contracts are simple scripts that are applied when predictive conditions are met and recorded on a blockchain [12]. They are often used to automate the implementation of an agreement so that all parties are guaranteed timely closure without the need for intermediaries or wasted time. You can also automate a workflow by taking the next step when certain circumstances are met.[13] The lifecycle of a generic smart contract begins when the parties enter the terms of a contract into a distributed ledger.
Then they connect to internal or external databases and systems. The contract waits for the predefined conditions of the external variables to be evaluated. Finally, the contract itself is executed if the criteria are met via triggers. The ease with which smart contracts can be deployed on public blockchains, also known as public smart contracts, has triggered a number of business applications [14]. Using smart contracts for insurance can be very useful for claims settlement. On the one hand, blockchain has the potential to provide key digital opportunities to reduce process duplication, increase process automation and efficiency, improve the customer experience, and improve data quality. .