For years, insurance giants and start-ups alike have been searching for a simple breakthrough technology to prevent fraudulence. While the Internet has made purchasing insurance products more convenient, policies are still processed on paper contracts that require human supervision and are error-prone. Each step of the insurance claim process entails a potential risk – any piece of information could be misinterpreted, mismanaged and misused.
Now, the industry is beginning to embrace the blockchain technology that propelled Bitcoin into prominence. Blockchain is able to keep a secure and transparent record of all transactions in the auto insurance ecosystem, providing a safe and cost-effective solution for industry. The trickling benefits of blockchain include: lower premiums, new niche products, and enhanced trust between insurers and clients.