While blockchain and AI were some of the foremost common buzzwords in 2017, there’s little question that it’ll still feature dominantly within the coming years too.
Financial organizations have been among the early adopters of this game-changing technology. While it’s nevertheless to be accepted as a thought technology within the insurance sector, blockchain and AI are certainly creating the right amount of buzz. It has an excessive potential for the whole value chain of the insurance sector from underwriting, payments, claims, back-office functions, and risk capital.
Life insurance-specific potential implications:
- In combination with automated underwriting, reduce the need for consumers applying for life insurance to see a physician or, in some cases, take additional lab tests.
- Reward members who engage in healthy behaviors such as exercise (e.g., data from an exercise tracker could be uploaded to the blockchain and the insurance company could access it, with a smart contract triggering the appropriate incentive).
- Reprice policies or provide other financial or non-financial rewards based on current health information.
- Automatically method new business, claims, in-force transactions, disclosures, agent information, and other transactions.
A blockchain-based system may allow more carriers to directly own the client relationship while supporting a wider variety of consumer-driven purchase options. Indeed, blockchain’s ability to validate and execute transactions without an institutional intermediary may make consumers more likely to seek emerging arrangements to buy individual life insurance, such as:
Online insurance markets
Blockchain could be deployed to accelerate the development of web-based portals for life coverage, combining centralized customer records, advanced analytics,
Prospects could more easily shop for individual coverage on their own via these virtual exchanges by providing access to their blockchain-protected medical and wellness histories, or allow an online insurance navigator access to their blockchain to assess policy opportunities among a range of
Given blockchain’s capability to automatically execute coverage terms and conditions through smart contracts, increasingly data-driven, technology-savvy, “do it yourself” shoppers could more easily compare and purchase insurance on their own, while maybe seeing lower premium prices because of the elimination of brokerage services. Blockchain could increase the security and even the usability of health insurance exchanges by enabling sensitive information to be entered, accessed and processed quickly and efficiently.
Blockchain might support the formation of additional various risk transfer vehicles, such as peer-to-peer (P2P) or crowdfunded insurance exchanges. These evolving, mutual-risk-pooling arrangements are actually a throwback to the insurance industry’s original business model.
However, blockchain may help these new grassroots online arrangements unite a broader segment of consumers that seek standard or customized insurance products by more reliably and transparently recording and storing medical information, activities, and transactions and by using smart contracts to enforce and automatically
Max Life is considering to optimize this transformation through a bigger client-centricity by digitalizing its existing processes and informal interfaces like AI-enabled chatbots, in the areas of recruitment, sales, and services.
Max Life Insurance has deployed blockchain specifically for risk choice and claims functions. On the AI front, to assist its customer the company is using Interactive Voice Response (IVR tree) along with voice biometric mechanisms for sentiment analysis. While on the seller side, the insurer has developed digital pipes to streamline its policy underwriting, issuance, renewals and servicing process.
Blockchain’s added security and ability to establish trust between entities are two reasons why it can help solve the interoperability problem better than today’s existing technologies. With blockchain, providers could either select which information to upload to a shared blockchain when a patient event occurs or continuously upload to the blockchain. Adoption of blockchain technologies by insurance companies can have long implications because it won’t solely alter the economical delivery of services however additionally facilitate insurance firms to stick to regulatory requirements.