One of the newest companies to adopt blockchain technology is insurance provider, AIG. They’re betting that the technology can make the insurance claim process more efficient and trustworthy. Their pilot, launched in June, hopes to prove out the use on blockchain in three different markets, the US, Kenya, and Singapore, with the hope that the introduction of third parties like brokers and adjusters into the ledger will increase transparency for the industry.
“Our pilot proves blockchain has a power role to play in the future of insurance,” said Rob Schimaek, CEO of Commercial at AIG. “Any technology that can increase trust and transparency for an industry whose pillars are built on that should be fully explored,” he said in the announcement.
The blockchain-based policy will also help reduce the number of incidents of fraud and errors. It will also reduce the need for participants to contact each other to view policy and payment data or the status of policies, the announcement said.
Blockchain is potentially good for major insurance contracts because it easily includes third parties in the network. They could include auditors, brokers and customers of the insured, as well as the insurer and all participating insured parties.
As more industries are finding applications for blockchain technology, we are fast entering an era where blockchain will become ubiquitous in many digital businesses.
Want to collaborate with a group of technologists developing solutions for enterprise companies using blockchain technology? Sign up for updates on VLab Hackathons held in our New York office!